Dollar index accelerates and rises for the third day in a row

Matías Salord FXStreet

The US dollar rose across the board on Tuesday and it was consolidating gains near the end of the American session. Greenback climbed even against the Japanese yen despite a retreat of equity prices in Wall Street.

The greenback, tracked by the US Dollar Index, started the day below 95.50 and recently peaked at 96.07, the highest level since August 9 and it was hovering around 96.00, up 0.50% for the day. It is gaining ground for the third day in a row and for the fifth time out of the last six trading days.

According to the CME Group FedWatch that presents the probability of FOMC rate move, the odds of a September rate hike rose today from 21% to 24%, supporting the US dollar rally in the market.

US Dollar relevant levels

To the upside, resistance levels might be seen at 96.35 (200-day SMA) ahead of 96.50 (Aug 5 high) and then 96.85 (Jan 27 high). On the other hand, support could be located at 95.75 (Aug 29 high), 95.45 (daily low) and 95.25 (20-day SMA).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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