DXY retreats after being unable to rally above 93.00 still up for the day

The US dollar weakened during the American session and extend losses against commodity currency and the yen while it only managed to keep gains versus the euro and the Swiss franc. The Dollar Index peaked at 93.05 after the release of US economic data and the pulled back trimming gains.

Dollar Index losses strength but ends negative streak

Near the end of the session it as hovering around 92.80/85, up 0.05 for the day, helped by the slide of EUR and CHF. It is the first daily gain after losing ground during four consecutive days. The slide from Friday’s high above 94.00 found support around the 20-day moving average that stands at 92.70.

DXY bottomed earlier today at 92.60, the lowest in two weeks. Then started to move to the upside and received an impulse from US data. Initial jobless claims stood at 243K, below the 251K expected while the producer price index rose 0.4% in September and 2.6% over the last twelve months. The core PPI climbed 0.4%, above the 0.2% of market consensus.

The greenback failed to extend gains after the data and DXY pulled back under 93.00, losing strength. Price action across financial markets remained limited on Thursday, excluding Pound’s crosses that move sharply amid Brexit negotiations. Now attention turns to Friday’s key US economic data: consumer price index and retail sales.

Technical levels

The immediate support in the DXY is seen around at 92.75 followed by 92.55/60 (Oct 12 low) and 92.30 (Sep 26 low). To the upside, resistances could be seen at 92.90, 93.05 (Oct 12 high / Oct 4 low), 93.15 (Oct 11 high) and 93.55 (Oct 9 high).

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