US Dollar clings to gains around 93.00 ahead of US PCE
The greenback, measured by the US Dollar Index (DXY), is posting marginal gains at the end of the week, recovering part of the ground lost on Thursday.
US Dollar attention to data
The index retreated from yesterday’s multi-week tops around 93.70 following a retracement in yields of the key US 10-year benchmark, which seems to have found strong resistance around 2.36%.
In addition, USD-sellers stepped in as the positive sentiment following the announcement of the tax reform proposal by the Trump administration fizzled out somewhat.
However, and despite the ongoing correction, DXY stays on course to close the third week with gains, extending the rebound from fresh cycle lows in the 91.00 neighbourhood seen in early September.
Quite busy US docket today, with August’s inflation figures tracked by the PCE next on tap, seconded by personal income/spending and the final print of the consumer sentiment for the month of September. In addition, Philly Fed P.Harker (voter, hawkish) is also due to speak.
US Dollar relevant levels
As of writing the index is gaining 0.03% at 92.98 facing the immediate resistance at 93.66 (high Sep.28) followed by 94.03 (23.6% Fibo of the 2017 drop) and finally 94.14 (high Aug.16). On the other hand, a breach of 92.60 (10-day sma) would open the door to 92.35 (21-day sma) and finally 91.53 (low Sep.20).
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.
