US Dollar Index moves to fresh highs near 96.30
- The index recovers ground lost after dropping near 96.00.
- Yields of the US 10-year note tested sub-3.05% levels.
- US Housing Starts, Building Permits next on tap in the docket.
The greenback, in terms of the US Dollar Index (DXY), remains under pressure and close to the 96.00 area despite the ongoing bounce off lows.
US Dollar Index looks to data, Brexit
After five consecutive sessions with losses, the index is now giving some signs of life and manages to rebound from recent lows in the vicinity of the 96.00 area to the 96.25/30 band.
The Dollar stays vulnerable so far this week and is looking to revert the recent negative streak following 2018 peaks around 97.70 recorded earlier in the month (November 12). It is worth mentioning that the buck has accelerated the leg lower in response to last week’s dovish comments from Fed’s R.Clarida.
In the meantime, the buck keeps looking to developments in Euroland for direction, with the Brexit negotiations and Italian politics in the centre stage for the time being.
US Dollar Index relevant levels
As of writing the index is gaining 0.14% at 96.33 and a breakout of 96.61 (21-day SMA) would open the door to 96.72 (10-day SMA) and then 97.69 (2018 high Nov.12). 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.
