US Dollar Index firmer, regains the 91.00 mark and beyond
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US Dollar Index firmer, regains the 91.00 mark and beyond

  • DXY picks up pace and reclaims the 91.00 mark
  • Risk aversion sentiment lends support to the dollar.
  • US Consumer Credit Change only scheduled for later.

The greenback regains the smile at the beginning of the week and pushes the US Dollar Index (DXY) to fresh 3-day peaks beyond the 91.00 mark.

US Dollar Index in 3-day highs

The index finally shows some signs of life after four consecutive daily pullbacks and manages to reclaim the key barrier at 91.00 the figure, recording at the same time new multi-day tops.

Renewed concerns over the performance of the US economy following Friday’s disappointing Nonfarm Payrolls coupled with the persistent lack of solid progress in the Brexit talks and some profit taking sentiment in light of the recent strong gains in the risk complex, all collaborate in sustaining the re-emergence of the risk aversion in the global markets.

In the US data space, the only release will be the Consumer Credit Change for the month of October.

What to look for around USD

The dollar manages to regain some much-needed oxygen and advances beyond the 91.00 mark following last week’s drop to 32-month lows in the mid-91.00s. The ongoing correction in the risk complex sponsors the rebound in DXY, although further bullish attempts are viewed as short-lived. Furthermore, the outlook for the greenback stays well in the bearish side amidst rising probability of extra monetary/fiscal stimulus in the US economy, the “lower for longer” stance from the Federal Reserve and rising vaccine hopes.

US Dollar Index relevant levels

At the moment, the index is advancing 0.55% at 91.19 and a breakout of 91.92 (23.6% Fibo of the 2017-2018 drop) would open the door to 92.80 (weekly high Nov.23) and finally 93.20 (weekly high Nov.11). On the other hand, immediate contention emerges at 90.47 (2020 low Dec.4) followed by 89.22 (monthly low Apr. 2018) and then 88.94 (monthly low March 2018).

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