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  • The index is now approaching the 95.30 area, near daily highs.
  • Italian fiscal uncertainty keeps weighing on sentiment.
  • US ISM Manufacturing missed expectations in September.

The US Dollar Index (DXY), which tracks the buck vs. a basket of its main competitors, is now regaining some attention and is trading close to daily highs in the 95.30/40 band.

US Dollar Index well supported near 95.00

After the earlier knee-jerk to the 95.00 neighbourhood, dip-buyers and renewed concerns on the Italian fiscal front have motivated USD-bulls to return to the markets, pushing the index to the upper end of the daily range.

The up move in DXY comes amidst a retracement in US 10-year yields from daily highs just below the 3.10% to the current low end of the daily range at/around 3.07%.

Data wise, the greenback paid little attention to today’s results from the ISM Manufacturing, which came in at 59.8 for the month of September.

US Dollar Index relevant levels

As of writing the index is gaining 0.07% at 95.25 facing the immediate resistance at 95.37 (high Sep.28) seconded by 95.74 (monthly high Sep.4) and finally 96.04 (50% Fibo of the 2017-2018 drop). On the downside, a breach of 93.81 (low Sep.21) would aim for 93.71 (monthly low Jul.9) and then 93.19 (monthly low Jun.14).