US Dollar firm, around 93.00 ahead of US PCE

Pablo Piovano FXStreet

The greenback, in terms of the US Dollar Index, stays on a firm fashion so far today and is currently hovering over the 93.00 neighbourhood.

US Dollar focus on US PCE

The index is posting gains for the third consecutive session, coming up from Tuesday’s fresh cycle lows near 91.60 and managing to retake, albeit briefly, the critical 93.00 handle and above earlier in the session.

Positive results from the US docket on Wednesday saw advanced Q2 GDP figures and the ADP report coming in above expectations, lending extra wings to the buck while the renewed and quite strong selling bias in EUR/USD has also collaborated with the recovery.

Ahead in the NA session, personal income/spending, pending home sales, the usual weekly report on the labour market and the more relevant inflation figures tracked by the PCE are all expected to keep the buck in centre stage.

US Dollar relevant levels

As of writing the index is gaining 0.11% at 92.89 and a break above 93.06 (high Aug.31) would target 93.21 (21-day sma) en route to 93.63 (high Aug.23). On the other hand, the next support aligns at 91.62 (2017 low Aug.29) followed by 91.51 (low Jan.15 2015) and finally 90.00 (psychological handle).

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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