US Dollar turns positive near 98.80

Pablo Piovano FXStreet

The US Dollar Index, which tracks the buck vs. its main rivals, has recovered the positive territory around 98.70, reverting the initial bearish mood.

US Dollar resilient on poor US data

It seems the greenback has recovered the smile today, so far snapping a 2-day negative streak around 98.70 following today’s releases in the US calendar.

In fact, US Durable Goods Orders and Initial Claims have come in short of initial estimates today. On the bright side, Pending Home Sales have expanded at a monthly 1.5% in September, reverting the previous 2.5% drop and surpassing forecasts for a 1.2% gain.

US yields are posting gains across the curve, lending extra legs to USD, which remains supported by increasing chances of a Fed move by year-end. According to CME Group’s FedWatch tool and based on Fed Funds futures prices, the probability of higher rates in December is just above 67%.

US Dollar relevant levels

The index is gaining 0.12% at 98.75 facing the next resistance at 99.09 (high Oct.25) followed by 99.95 (high Jan.21) and then 100.60 (high Dec.3). On the other hand, a break below 98.31 (low Oct.26) would aim for 97.50 (20-day sma) and finally 95.86 (200-day sma).

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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