US Dollar Index climbs to daily highs near 94.40

  • DXY keeps the bid tone and clinches tops near 94.40.
  • Risk aversion sentiment prevails after the opening bell in Europe.
  • US Durable Goods Orders, FOMC’s Williams next in the docket.

The greenback, when measured by the US Dollar Index (DXY), resumes the upside and tests session highs in the 94.40/45 band at the end of the week.

US Dollar Index looks to risk trends, data

Global markets are apparently resuming their sentiment towards the risk aversion at the end of the week and motivate the index to regain upside traction and move to the area of daily highs around 94.40.

In fact, after reaching fresh 2-month tops in the boundaries of 94.60 on Thursday, the dollar trimmed those gains and closed the session within the negative territory, although managing well to keep business above the 94.00 mark.

In the US data space and later in the NA session, Durable Goods Orders for the month of August are due seconded by speeches by New York Fed John Williams (permanent voter, centrist).

What to look for around USD

The dollar keeps the buying bias unchanged in the second half of the week despite Thursday’s negative close. In the meantime, DXY keeps looking for some consolidation after the recent breakout of the 94.00 barrier. The ongoing and moderate bullish move in DXY is (still) seen as temporary, however, as the underlying sentiment towards the greenback remains on the negative side. This view is reinforced by the “lower for longer” stance from the Federal Reserve, hopes of a strong recovery in the global economy, the negative position in the speculative community and political uncertainty ahead of the November elections and over further monetary/fiscal stimulus.

US Dollar Index relevant levels

At the moment, the index is gaining 0.04% at 94.38 and a break above 94.59 (monthly high Sep.24) would open the door to 95.54 (100-day SMA) and finally 96.03 (50% Fibo of the 2017-2018 drop). On the other hand, the next support emerges at 92.70 (weekly low Sep.10) seconded by 91.92 (23.6% Fibo of the 2017-2018 drop) and then 91.75 (2020 low Sep.1).

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