US Dollar Index challenging tops around 96.80

• The up move in the index is testing the topside around 96.80 so far.
• US 10-year yields clinch fresh tops around 3.17%.
• CB’s Consumer Confidence next of relevance in the docket.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main competitors, is extending the upbeat mood on Tuesday to the 96.80/85 region.

US Dollar Index focused on data, risk trends

The index is up for the second session in a row so far today, prolonging the rally and recovering last Friday’s pullback and with immediate hurdle at last week’s tops beyond 96.80.

Increasing political jitters in Germany and Italy have been weighing on the European currency as of late and have, in turn, been sustaining further the ongoing rally in the greenback.

Regarding the US-China trade dispute, all eyes are on the upcoming G20 meeting in Buenos Aires at the end of November, where President Trump and China’s Xi Jinping already agreed to talk on the issue.

In the data sphere, the Conference Board will publish later today its gauge of Consumer Confidence for the current month ahead of the API weekly report on crude oil supplies.

US Dollar Index relevant levels

As of writing the index is gaining 0.15% at 96.83 facing the next hurdle at 96.86 (high Oct.26) seconded by 96.98 (2018 high Aug.13) and finally 97.87 (61.8% Fibo of the 2017-2018 drop). On the downside, a breakdown of 96.21 (10-day SMA) would open the door to 95.81 (21-day SMA) and finally 94.79 (low Oct.12).