US Dollar firmer around 94.00 ahead of FOMC

Pablo Piovano FXStreet

The bid tone around the greenback stays unchanged on Wednesday, with the US Dollar Index currently hovering over the key 94.00 hurdle.

US Dollar bid despite data

The index stays on the positive path today despite US new home sales expanded below estimates 0.6% on a monthly basis, or 610K units vs. 615K units initially forecasted.

In the meantime, DXY is advancing for the third session in a row, extending the bounce off yesterday’s fresh 2017 lows in the 93.50/45 band amidst a recovery of US yields.

Further data in the US calendar will include the EIA’s weekly report on US crude oil inventories followed by the FOMC meeting, where the Committee is seen keeping the Fed Funds target range unchanged at 1.00%-1.25%, although some expected remarks on inflation could weigh on the buck.

US Dollar relevant levels

The index is up 0.14% at 94.05 with the immediate hurdle at 94.38 (10-day sma) seconded by 94.98 (high Jul.20) and then 95.07 (21-day sma). On the other hand, a break below 93.46 (2017 low Jul.25) would open the door to 93.41 (low Jun.8 2016) and finally 93.03 (low Jun.23 2016).

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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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