US Dollar bid around 95.50… still (very) red for the week

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index, keeps its daily gains for the time being, hovering around 95.50 after climbing as high as the vicinity of 95.60 in early trade.

US Dollar still near multi-month lows

Despite the current bullish (ish) attempt, the index stays well into the bearish territory, on its way to close the third consecutive week with losses and slightly up from recent lows near 95.30, levels last seen in October 2016.

The buck managed to move higher backed by yesterday’s upbeat final print of US GDP for the first quarter, which at the same time moved higher the probability of a rate hike by the Federal Reserve at its December meeting.

However, the buck seems to lack of genuine/fundamental demand against the backdrop of erratic US yields. The downbeat sentiment around the buck has intensified this week following the shift in the stance from some G10 central banks at the ECB Forum, opening the door for extra pullbacks and increasing the USD’s reaction to bad data.

On top, the greenback has to deal with the omnipresent effervescence in the US political scenario, present practically since Trump took office in late January.

US Dollar relevant levels

The index is gaining 0.21% at 95.51 and a breakout of 96.32 (high Jun.28) would target 96.60 (10-day sma) and then 97.56 (high Jun.15). On the flip side, the immediate support aligns at 95.22 (2017 low Jun.30) followed by 94.95 (low Sep.22 2016) and finally 94.05 (low Aug.18 2016).

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.

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