US Dollar turns positive near 98.80

Pablo Piovano FXStreet

The greenback, when measured by the US Dollar Index (DXY), is finally seeing some light at the end of the tunnel, now coming back to the positive territory around 98.80.

US Dollar finds support near 98.50

The index is retreating for the third consecutive week so far, trading in levels last seen in early November around the mid-98.00s, always amidst a renewed and strong comeback of the risk-on trade to the global markets.

Markets’ appetite for riskier assets have intensified following Macron’s win at the first round of the French presidential elections on Sunday, and the upbeat tone appears poised to extend as investors (and election polls) continue to see the centrist and pro-EU candidate winning the second round on May 7 over far-right candidate Marine Le Pen.

Nothing interesting from the US docket so far this week, while markets seem more entertained by what Trump achieved or failed at during his first 100 days in office.

Data wise today, the EIA will publish its weekly report on crude oil inventories ahead of tomorrow’s Durable Goods Orders and Friday’s more relevant advanced GDP figures for the first quarter.

US Dollar relevant levels

The index is up 0.08% at 98.80 and a break above 99.02 (200-day sma) would aim for 99.20 (23.6% Fibo of the April drop) and finally 99.24 (high Apr.24). On the flip side, the next support aligns at 98.61 (low Apr.26) seconded by 98.56 (2017 low Apr.25) and then 96.94 (low Nov.4 2016).

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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