US Dollar trims gains to 89.80, FOMC on sight
- DXY up move run out of legs in the boundaries of 90.00.
- Sellers are now dragging the index to the 89.85/80 band.
- US existing home sales came in lower, FOMC is next on tap.
The greenback, in terms of the US Dollar Index (DXY), has given away part of the initial advance to the boundaries of 90.00 the figure and has now receded to the 89.80 region.
US Dollar now looks to FOMC
Fresh sellers appeared in the vicinity of the psychological 90.00 handle today, forcing the index to fade part of the up move although it remains well into the positive territory on a weekly basis.
In the meantime, USD seems to be once again looking to yields in the US 10-year note when comes to determine the price action, reverting the trend that has been playing since the start of the year.
In the US calendar today, existing home sales contracted 3.2%, or 5.38 million units, during January, coming in below initial expectations. On the opposite side, Markit’s advanced manufacturing PMI is seen at 55.9 this month, beating consensus.
Later in the session, the FOMC will publish its minutes of the latest meeting, with the potential rate path by the Federal Reserve grabbing the bulk of the attention.
US Dollar relevant levels
As of writing the index is up 0.10% at 89.80 and a break above 90.57 (high Feb.8) would aim for 91.00 (high Jan.18) and then 91.28 (55-day sma). On the flip side, the immediate support aligns at 88.26 (2018 low Feb.16) seconded by 88.13 (200-month sma) and finally 86.89 (support line off 72.70).
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.
