US Dollar within range above 95.00
- The index trades with losses albeit keeps the 95.00 mark.
- US markets stay closed due to the Labor Day holiday.
- Fedspeak, Payrolls poised to drive sentiment later this week.
The greenback, gauges by the US Dollar Index, remains on the defensive at the beginning of the week although it manages well to keep business above 95.00 the figure for the time being.
US Dollar looks to trade, data
The index is reverting two consecutive positive sessions amidst thin trade conditions and marginal volatility, all in response to the inactivity in the US markets due to the Labor Day holiday.
Despite the knee jerk, the buck is managing to keep the trade above the 95.00 milestone, as jitters on the US-China trade front and EM FX instability are somewhat limiting occasional dips.
Moving forward, a slew of Fed-speakers later in the week should leave the Dollar in centre stage in light of the upcoming FOMC meeting and the likelihood of another rate hike. In addition, US Non-farm Payrolls are also expected at the end of the week, also keeping the buck under the miscroscope.
US Dollar Index relevant levels
As of writing the index is losing 0.03% at 95.08 and a breakout of 95.22 (high Aug.31) would open the door to 95.53 (21-day SMA) and finally 95.71 (high Aug.23). On the other hand, the next support emerges at 94.45 (low Aug.28) seconded by 94.20 (38.2% Fibo of the 2017-2018 drop) and then 94.08 (low Jul.26).
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.
