US Dollar: upside struggles near 97.40

Pablo Piovano FXStreet

The US Dollar Index (DXY) – which measures the buck vs. its main competitors – stays on a firm note on Tuesday, looking to extend the upbeat momentum beyond 97.40.

US Dollar bid on mixed Fedspeak, upbeat yields

The index is clinging to its daily gains around 97.30/40 band today following mixed messages by FOMC speakers.

In fact, NY Fed W.Dudley showed optimism that US inflation should pick up pace, while Chicago Fed C.Evans suggested earlier today that the Fed should wait until December for another rate hike in order to assess incoming data.

In addition Boston Fed E.Rosengren argued that low rates pose financial stability risks.

Absent releases in the US docket this week, speeches by FOMC governors should be the main driver of the buck’s price action in the very near term along with the broader risk appetite trends.

US Dollar relevant levels

The index is gaining 0.05% at 97.28 facing the next resistance at 97.56 (high Jun.15) followed by 97.63 (38.2% Fibo of the May-June drop) and then 98.04 (50% Fibo of the May-June drop). On the other hand, a breach of 96.31 (2017 low Jun.14) would target 95.91 (low Nov.9 2016) and finally 94.95 (low Sep.22 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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