US Dollar depressed around 101.20, US data eyed

Pablo Piovano FXStreet

The offered bias around the greenback remains unabated so far this week, now prompting the US Dollar Index (DXY) to recede to the 101.25/20 band.

US Dollar focus on US data

The index – which tracks the buck vs. its main rivals – is retreating for the third consecutive session so far, trading in weekly lows in the 101.20 region, as the greenback remains unable to leave behind the prevailing bearish note.

In the meantime, USD stays on the defensive in spite of recent Fedspeak re-confirming further tightening by the Federal Reserve, with members Lockhart and Harker expecting 2 and 3 rate hikes during this year, respectively. In addition, FOMC governors have emphasized the solid performance of the US economy, noting that employment is running almost at ‘full health’, while inflation figure could reach the Fed’s goal during this year or 2018.

Later in the NA session, USD will take centre stage in light of US Retail Sales (0.7% exp.) and the advanced gauge of the Reuters/Michigan Index for the month of January (98.5 exp.).

US Dollar relevant levels

The index is losing 0.27% at 101.19 facing the immediate support at 100.75 (low dec.14) followed by 99.49 (low Dec.8) and then 98.85 (100-day sma). On the flip side, a breakout of 102.52 (20-day sma) would target 102.96 (high Jan.11) en route to 103.81 (2017 high Jan.4).

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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