- The up move in DXY met resistance near 97.60 on Monday.
- Brexit and Italy keep driving the markets’ sentiment today.
- US CPI, Retail Sales, Powell next of relevance ahead in the week.
After recording fresh 2018 peaks near 97.60 earlier in the day, the US Dollar Index (DXY) met some sellers and is now meandering the 97.40 region.
US Dollar Index stays bid above 97.00
The rally in the greenback remains well and sound for yet another week. So far, the index closed with gains in 7 out of the last 8 weeks following September’s low in the 94.80 region and is now entering the fifth consecutive week with gains.
The hawkish tone from Chief Powell in past weeks, the likely continuation of the tightening cycle by the Federal Reserve in the next months, robust US data releases and healthy prospects on the US economy have all combined with persistent jitters around Brexit and Italian politics, all propping up the better sentiment in the buck and lending oxygen to the index.
Looking ahead, the Dollar should remain in the limelight this week, as US inflation figures tracked by the CPI, Retail Sales for the month of October and the speech by Chief J.Powell are all due in the upcoming days.
US Dollar Index relevant levels
As of writing the index is gaining 0.46% at 97.34 and a breakout of 97.58 (2018 high Nov.12) would open the door to 97.87 (61.8% Fibo retracement of the 2017-2018 drop) and then 99.89 (monthly high May 11 2017). On the flip side, the next support emerges at 96.67 (10-day SMA) followed by 96.28 (21-day SMA) and finally 95.68 (low Nov.7).
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