US Dollar Index retreats after China seizes US underwater drone

The US dollar pulled back, equity indexes turned negative and the yen gained momentum after Reuters reported that the Chinese Navy seized an American underwater drone in the South China Sea.

The US Dollar index, which gauges the greenback against its main competitors, fell from 103.15 to 102.57, hitting a fresh daily low after reports. The index was holding near the lows and under the 102.75 zone, that now could become a resistance. 

The Dow Jones is now falling 0.06% and the S&P 500 0.20%. Gold rose $10 in a few minutes and printed a fresh daily high at $1141. The yen was the biggest gainer during the last hours. 

DXY levels 

To the upside, resistance might be seen at 102.75 (European session low), 103.20 (daily high) and 103.50 (Dec 15 high). On the opposite direction, support could be located at 102.55, 102.10 (Dec 15 high) and 10200 (psychological).