US Dollar flirting with 95.00, fresh tops

• Another new tops in the index, this time in the 94.85/90 band.
• US 10-year yields collapse to 2.80%, where found some support.
• CB’s Consumer Confidence next of relevance in the index.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main rivals, is prolonging the rally to the boundaries of the critical 95.00 mark.

US Dollar in fresh 6-month peaks

The robust rally in the greenback is now approaching the key barrier at 95.00 the figure in spite of yields of the US 10-year note keep falling, although they seem to have found some contention in the 2.80% neighbourhood for the time being. It is worth mentioning that yields has been losing ground since multi-year highs beyond the 3.13% level recorded a couple of weeks ago.

Furthermore, investors continue to unwind EUR long positions, opening the door for deeper retracements in EUR/USD and in turn sustaining further advances in the buck. The persistent deterioration in the Italian political scenario keeps contributing to the increasingly bearish mood around the European currency.

Looking ahead, US Consumer Confidence gauged by the Conference Board is next on tap followed by the S&P/Case-Shiller index for the month of March.

US Dollar relevant levels

As of writing the index is gaining 0.58% at 94.97 facing the next resistance at 95.00 (psychological level) followed by 95.15 (monthly highs Oct/Nov. 2017) and finally 96.51 (high Jul.4 2017). On the flip side, a breakdown of 93.87 (10-day sma) would target 93.30 (low May 21) en route to 93.26 (21-day sma).