US Dollar parked around 94.60 post-US data

The index keeps the narrow range between 94.20 and 94.60.
US 10-year yields climb to fresh tops beyond 2.92%.
US Existing Home Sales contracted 0.6% MoM in June.

Pablo Piovano FXStreet

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main competitors, is trading without a clear direction at the beginning of the week in the 94.20/60 range.

US Dollar looks to Trump, trade, data

The index is looking to extend the rebound after testing the 55-day sma in the 94.25/20 band earlier in the session, although the boundaries of the 94.60 area keep limiting the upside for the time being.

In the meantime, and against the backdrop of a vacuum of fresh headlines or events, the buck keeps looking to the US-China trade dispute for direction as well as the persistent decline in the Chinese Yuan.

On another front, yields of the US 10-year reference are prolonging the up move to the fresh tops above 2.92%.

In the data space, the Chicago Fed index surprised to the upside in June, while Existing Home Sales contracted 0.6% MoM vs. a forecasted 0.5% expansion.

US Dollar relevant levels

As of writing the index is up 0.11% at 94.56 facing the next resistance at 94.71 (10-day sma) seconded by 95.53 (high Jun.28) and finally 95.65 (2018 high Jul.19). On the downside, a breach of 94.23 (55-day sma) would target 94.20 (38.2% Fibo of 2017-2018 drop) en route to 93.71 (low Jul.9).

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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