The US Dollar Index has lost upside momentum and retreated from tops near 95.30. At the moment, what relevant levels should traders watch?
12 September, OctaFX – The US Dollar Index (DXY), which gauges the greenback vs. its main competitors, has now come under some selling pressure and recedes from earlier peaks near the 95.30 region.
US Dollar Index Loses Upside Momentum
The index quickly faded the initial up tick to daily highs near 95.30 and has now refocused its attention to the critical support at 95.00 the figure, which also coincides with the key short-term support line.
The greenback remains sidelined so far this week and is still unable to gather some serious upside traction, while trade jitters and prospects of further tightening by the Federal Reserve keep limiting the downside somewhat.
In the US data space, Producer Prices for the month of August are due later in the NA session along with the weekly report on US crude oil inventories by the EIA.
US Dollar Index relevant levels
As of writing the index is gaining 0.10% at 95.17 and a break above 95.74 (high Sep.4) would open the door to 96.04 (50% Fibo of the 2017-2018 drop) and finally 96.96 (2018 high Aug.15). 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).
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