US Dollar Index met support around 97.60 ahead of key data

  • The decline in DXY met contention near 97.60.
  • US 10-year yields navigate above 1.70%.
  • ADP report, ISM Non-Manufacturing next of note in the docket.

The US Dollar Index (DXY), which gauges the greenback vs. a bundle of its main rivals, is trading with marginals gains near the 97.80 region.

US Dollar Index looks to data, trade

The bearish move in the index met decent contention in the 97.60 region on Tuesday, where sits the critical 200-day SMA.

The noticeable correction lower in the buck following last week’s tops beyond 98.50 was in tandem with the resurgence of concerns on the US-China trade front, particularly after President Trump hinted at the likeliness that a deal could well wait until after the 2020 US elections.

In the same line, President Trump criticized once again the Fed’s policy after complaining about the (according to his view) strong dollar.

On Wednesday’s calendar, the ADP will report on the job creation by the US private sector during last month, while the ISM will release its non-manufacturing gauge for the same period ahead of the EIA’s weekly figures for US crude oil supplies. In addition, FOMC’s R.Quarles (permanent voter, centrist) will speak on Supervision and Regulation to the Congress.

What to look for around USD

DXY remains under pressure although the ongoing retracement met solid contention around the 200-day SMA near 97.60 for the time being. The deterioration in the US-China trade front hurt US yields and the sentiment around the buck, sponsoring at the same time another ‘fly-to-safety’ from investors, with bonds and the Japanese yen as main beneficiaries. On the broader view, however, the outlook on the greenback still looks constructive on the back of the ‘wait-and-see’ stance from the Fed vs. the broad-based dovish view from its G10 peers, the ‘good shape’ of the US economy, the dollar’s safe haven appeal and its status of ‘global reserve currency’.

US Dollar Index relevant levels

At the moment, the pair is gaining 0.03% at 97.76 and faces the next support at 97.64 (monthly low Dec.3) seconded by 97.63 (200-day SMA) and then 97.11 (monthly low Nov.1). On the flip side, a break above 98.12 (100-day SMA) would aim for 98.54 (monthly high Nov.29) and finally 99.25 (high Oct.8).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD challenges weekly highs is a sentiment-driven advance

The financial markets continue to focus on sentiment instead than on data, with equities leading the way. Upbeat earnings reports overshadow coronavirus-related concerns. EUR/USD nearing June monthly high at 1.1422.


GBP/USD trims intraday losses, trades flat around 1.2550

The US session is seeing the dollar gave up early gains, even against the weakened Pound. GBP/USD hovers around 1.2550, despite disappointing UK GDP.


Gold advances to fresh daily highs near $1,810

The XAU/USD pair closed the first day of the week with small gains above $1,800. After spending the European session moving sideways in a tight channel, the pair turned north on broad USD weakness during the American session. 

Gold News

Bitcoin low volatility indicates a significant move to $8,000 or $10,000 is nearby

Bitcoin price is currently at $9,229 after a brief dip to $9,104. It is currently below the daily 12-EMA and the 26-EMA which have been unable to cross positively due to the lack of bullish continuation. 

Read more

WTI Oil Outlook: Concerns of slowdown in global demand recovery pressure oil price

WTI oil remains at the back foot on Tuesday and establishes below $40 level, as sentiment weakened on news of new restrictions in California due to increased number of infections.

Oil News