US dollar index rebonds sharply amid a rally in Wall Street

Matías Salord FXStreet

The US dollar gained momentum during the American session and rose sharply particularity against European currencies and the yen. The move sent the US Dollar Index (DXY) quickly to the upside.

The DXY climbed from 98.95 to 99.59, erasing weekly losses. It is hovering around 99.50, moving in the same area of last Friday. The index is making an important bounce after falling yesterday to 98.62, the lowest since mid-November.

The rally of the US dollar took place as equity prices rose further in Wall Street and amid a decline in US bonds. The Dow Jones is up 0.85% and the Nasdaq is gaining 0.74%. In the bond market, the 10-year yield climbed from 2.36% to 2.42%. Crude oil moved off highs but it was still up more than 1% while gold dropped below $1250, erasing weekly gains.

DXY technical levels

To the upside, resistance levels could be located at 99.75/80 (Mar 20 low, Mar 24 high), 100.25 ( Mar 17 & 20 high) and 100.60 (Feb 24 low). On the flip side, potential support levels are seen at 99.15 (Feb 02 low) and 98.70/75 (uptrend line).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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