US Dollar Index leaps to tops above 96.60

The index gathers further traction and tests the 96.55/65 band.
US 10-year yields navigate lows around 3.05%.
US Housing Starts, Building Permits expanded more than expected.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which gauges the greenback vs. a basket of its main rivals, has reverted the initial negative tone and is now marching higher to the 96.60 region, or daily highs.

US Dollar Index bolstered by sentiment, data

After five consecutive daily pullbacks, the index is now managing to regain some buying interest and reclaim the mid-96.00s and above, extending the rebound from the earlier test of the 96.00 neighbourhood.

The risk-off sentiment is picking up extra steam on Tuesday, dragging US stocks, oil and the rest of the risk-associated universe to lower levels against the backdrop of the persistent decline in yields of the key US 10-year reference.

In the US docket, latest results from the housing sector showed Housing Starts and Building Permits expanding to 1.228M and 1.263M, respectively, during October, surpassing prior surveys.

US Dollar Index relevant levels

As of writing the index is gaining 0.43% at 96.61 and a breakout of 96.74 (10-day SMA) would expose 97.69 (2018 high Nov.12) and the 97.87 (61.8% Fibo retracement of the 2017-2018 drop). On the other hand, the next support emerges at 96.13 (low Nov.19) seconded by 95.68 (low Nov.7) and finally 95.67 (55-day SMA).

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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