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  • DXY’s rebound already tests the 93.00 mark, 4-day highs.
  • The dollar extends the rebound from recent +2-year lows.
  • Initial Claims, ISM Non-Manufacturing next on tap in the docket.

The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main competitors, is extending the upside momentum to the 93.00 region, clinching at the same time fresh multi-day peaks.

US Dollar Index stays bid and looks to data

The index is up for the third session in a row on Thursday, reclaiming the 93.00 neighbourhood and flirting at the same time with the 21-day SMA.

The strong bounce in the dollar comes after bottoming out near 91.70 earlier in the week, levels last seen in April 2018. In the meantime, profit taking in the risk complex continues to sustain the improved momentum in the buck, also bolstered by recent better-than-expected results from the US calendar.

Later in the NA session, Challenger Job Cuts for the month of August is due seconded by July’s trade balance figures, usual weekly Claims, final Markit’s Services PMI and the always-relevant ISM Non-Manufacturing. In addition, Chicago Fed C.Evans (2021 voter, centrist) is due to speak.

What to look for around USD

The index extends the rebound from fresh +2-year lows near 91.70 and is already gyrating around the 93.00 level. Despite the ongoing recovery, and looking at the broader picture, investors keep the bearish view on the dollar unchanged against the backdrop of a (more) dovish Fed, the unremitting progress of the coronavirus pandemic and political uncertainty ahead of the November elections. On the supportive side of the buck emerge occasional bouts of US-China tensions.

US Dollar Index relevant levels

At the moment, the index is gaining 0.33% at 92.95 and a break above 93.03 (weekly high Sep.3) would aim for 93.47 (weekly high Aug.21) and finally 93.99 (monthly high Aug.3). On the other hand, the next support is located at 91.75 (2020 low Sep.1) seconded by 89.23 (monthly low April 2018) and then 88.94 (monthly low March 2018).

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