US Dollar Index recovery halted ahead of 94.70

The index rebounds from earlier lows in the 94.30 area.
Yields of the US 10-year note hover over the 3.06%, a tad off highs.
US Housing Starts beat estimates at 1.282 million in August.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main competitors, has managed to leave behind the initial negative mood and is now looking to extend the daily gains in the 94.60/65 band.

US Dollar Index bid after data, sentiment

The index is looking to revert two consecutive daily pullbacks, finding quite decent support in the 94.30 region for the time being.

Despite market participants remain quite skeptic regarding headlines from the US-China trade dispute, sentiment in the global markets now appears to favour the buck after another disappointing news from the Brexit negotiations, particularly from the Barnier-May meeting.

In the US data space, positive results from Housing Starts for the month of August lent extra oxygen to the rebound in the buck, while a narrower Current Account deficit in Q2 also helped with the up move.

US Dollar Index relevant levels

As of writing the index is losing 0.03% at 94.59 facing the next support at 94.32 (low Sep.18) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26). On the flip side, a break above 95.00 (high Sep.14) would target 95.05 (55-day SMA) en route to 95.74 (high Sep.4).

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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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