US Dollar trims gains, back near 95.50

Pablo Piovano FXStreet

The US Dollar Index, which tracks the buck vs. its main rivals, has surrendered initial gains and has now returned to the mid-95.00s.

US Dollar gains capped near 96.00

The index has fully faded the earlier spike to the boundaries of the critical barrier at 96.00 the figure – where sits the key 200-day sma - as the risk-associated universe has recovered part of its lost shine.

The upside momentum in USD could not find follow through after mixed results from the US docket showed higher US inflation figures tracked by the PCE, flat Personal Spending and in-line Personal Income during last month.

Further data saw US Consumer Sentiment gauged by the Reuters/Michigan Index and the Chicago PMI surpassing initial estimates.

After last week’s retracement, the index has so far closing this week with gains while remains supported by the significant support line off 2016 low (May 3), today near 94.80.

US Dollar relevant levels

The index is gaining 0.06% at 95.59 and a break above 95.97 (high Sep.30/200-day sma) would aim for 96.31 (spike post-BoJ Sep.21) and finally for 96.50 (high Aug.5). On the flip side, the immediate support lines up at 94.92 (support line off 2016 low) ahead of 94.44 (low Sep.8) and finally 94.05 (low Aug.18).

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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