US Dollar in fresh 2018 tops beyond 93.60

The index braces new 2018 tops above 93.60.
US 10-year yields rangebound around 3.07%.
US Industrial Production expanded more than expected in April.

Pablo Piovano FXStreet

After a brief test of new 2018 tops above 93.60 earlier in the session, the US Dollar Index (DXY) has now sparked a correction lower to the 93.45/40 band.

US Dollar backed by US yields, data

The index is up for the third session in a row today, climbing as high as the 93.60/65 area and at the same time clinching fresh multi-month tops.

Yields of the key US 10-year reference are trading just below recently recorded multi-year peaks beyond 3.07% and are in turn lending extra oxygen to the rally in the greenback.

In addition, US Industrial Production expanded more than expected 0.7% MoM during April while Manufacturing Production rose at a monthly 0.5%. Additional US data saw Building Permits at 1.352 million units and Housing Starts at 1.287 million.

US Dollar relevant levels

As of writing the index is gaining 0.35% at 93.59 facing the next hurdle at 93.63 (2018 high May 16) followed by 94.22 (high Dec.11 2017) and then 94.27 (high Oct.5 2017). On the other hand, a breakdown of 92.82 (10-day sma) would aim for 92.45 (23.6% Fibo of 89.23-93.45) and finally 92.24 (low May 13).

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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