US Dollar trims losses, gearing up for 99.00

Pablo Piovano FXStreet

After bottoming out in the 99.60 region, the US Dollar Index (DXY) has regained some buying interest and it is now flirting with the 99.00 handle.

US Dollar up despite data

The index has almost recovered the ground lost earlier in the session in spite of mixed results from the US docket today.

Advanced US GDP figures showed the economy is expected to expand at an annualized 0.7% during the January-March period, less than initially forecasted. In addition, the Chicago PMI surprised to the upside for the month of April (58.3 act. vs. 56.5 exp.), while the final print of April’s Consumer Sentiment tracked by the Reuters/Michigan Index came in at 97.0 vs. the preliminary reading at 98.0.

DXY stays firmly on its way to close the third consecutive week in red figures, including Monday’s gap lower and a breakdown of the critical 99.00/98.90 region, where sit the 200-day sma and the 11-month support (resistance) line.

USD should remain under pressure ahead in the day, as the probability of a Federal shutdown stays alive unless the Congress pass a continuing resolution later in the day. Market consensus, however, seems to lean on a last-minute deal for the time being.

US Dollar relevant levels

The index is down 0.11% at 98.91 facing the next support at 98.58 (low Apr.28) followed by 98.56 (2017 low Apr.25). On the flip side, a break above 99.21 (high Apr.27) would aim for 99.24 (high Apr.24) and finally 99.59 (38.2% Fibo of the April drop).

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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