US Dollar pushes higher near 92.50, 4-month tops
- The greenback remains well bid above the 92.00 mark.
- DXY clinches fresh 4-month tops close to 92.50.
- US ISM manufacturing missed estimates in April at 57.3.
Measured by the US Dollar Index (DXY), the greenback is prolonging the recent breakout of the key 92.00 barrier, bracing news 4-month tops at the same time.
US Dollar ignores soft ISM
The index is extending its march north during the first half of the week, moving to the mid-92.00s despite the key manufacturing gauge tracked by the ISM missed forecasts for the month of April at 57.3.
Additionally, Construction Spending contracted at a monthly 1.7% during March, while Markit’s manufacturing PMI matched expectations at 56.5 in April.
In the meantime, the buying interest around the buck keeps growing and DXY is already trading at shouting distance from YTD tops beyond 92.60 seen in early January.
The up move in USD is in tandem with a rebound of yields in the US 10-year note to daily highs in the vicinity of the 2.98% level ahead of the FOMC meeting expected tomorrow.
US Dollar relevant levels
As of writing the index is up 0.71% at 92.49 and a break above 92.64 (2018 high Jan.10) would aim for 93.68 (78.6% Fibo of 95.15-88.25) and finally 94.59 (200-week sma). On the other hand, the next support emerges at 90.89 (38.2% Fibo of 95.15-88.25) followed by 90.98 (10-day sma) and then 89.95 (high Apr.20).
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.
