The U.S. dollar currency exchange traded fund has been faltering on U.S. fiscal woes and Fed policy, but the Dollar Index could still dip further after falling below a key support level.

JPMorgan Chase & Co technical analyst Niall O’Connor believes the benchmark dollar gauge could depreciate to its weakest level since Sept. 14 2012 after dipping below a key area, reports Joseph Ciolli for Bloomberg.

“The index is finally putting some distance from the big area of support between 79.50 to 79.65,” O’Connor said in the article. “That suggests there’s more downside risk, and we’re probably more likely to see a closer test of the February low, and possibly down to the September low.”

The Dollar Index will test its first supporting level at 78.92, this year’s low, before hitting last year’s 78.60 low.

The index was at around 79.21 late Tuesday.

The U.S. dollar was depreciating against a basket of foreign currencies on the weaker-than-expected non-farm payrolls data. The U.S. economy generated 148,000 new jobs in September and the jobless rate fell 7.2%.

The PowerShares Dollar Bull ETF (NYSEArca: UUP) was down 0.6% Tuesday.

Meanwhile, the euro currency is trading around a two-year high against the greenback, GlobalPost reports. [Euro ETF Becomes Safe-Haven on U.S. Fiscal Woes]

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