US Dollar accelerates the upside near 100.00

The US Dollar Index – which measures the buck vs. its main competitors – is extending its upside momentum to the boundaries of the psychological 100.00 handle on Wednesday.
US Dollar in 6-day tops
The index managed to regain the vicinity of the critical 100.00 limestone backed by solid results from the US docket and supportive Fedspeak as of late.
In addition, news agency Reuters cited earlier in the session that markets could have misinterpreted when the ECB noted at the March meeting that tail risks were diminished, while ECB officials seem to be now worried about the potential surge in yields in EUR money markets. The news added extra oxygen to the buck’s upbeat sentiment, helping it to advance to fresh multi-day tops.
Data wise today, Pending Home Sales have surprised to the upside in February, up 5.5% MoM. Still in the US, Chicago Fed C.Evans (voter, centrist) said it would be nice if labor participation was much stronger, adding that he does not know the timing for the Fed to start reducing its balance sheet.
On the not so bright side, yields in the US money markets stay near session lows, carrying the potential to cap extra gains in DXY in the near term
US Dollar relevant levels
The index is up 0.33% at 99.86 and a break above 100.27 (high Mar.20) would target 100.64 (20-day sma)and then 101.02 (100-day sma). On the flip side, the next support aligns at 98.67 (low Mar.27) followed by 98.62 (200-day sma) and finally 98.31 (10-month support line).
Author

Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.


















