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  • DXY clinched new peaks beyond the 94.00 mark.
  • US elections remain a very close call on Wednesday.
  • ISM Non-Manufacturing, ADP report next of note in the US docket.

The greenback, when tracked by the US Dollar Index (DXY), keeps the bid bias unchanged and advances beyond the 94.00 mark on yardstick.

US Dollar Index focused on election results

The index reverses Tuesday’s negative price action and is posting strong gains beyond the 94.00 mark as US elections results remain a very close call so far.

In fact, Democrat candidate Joe Biden seems to be leading the race to the White House but by a small margin, while incumbent President Trump said he plans to go to the Supreme Court after calling the election a fraud.

 

 

In the meantime, the dollar climbed to fresh monthly peaks around 94.30 earlier in the session, just to recede some ground soon afterwards and ahead of key US data releases.

Indeed, Wednesday’s calendar includes the ADP report, Balance of Trade figures, weekly Mortgage Applications and the ISM Non-Manufacturing.

What to look for around USD

The index surpasses the 94.00 mark amidst rising cautiousness amongst investors, as the US elections turned up an unexpected (very) close call. The continuation of the upside momentum in the dollar hinges on the elections results in the very near-term as well as risk aversion stemming from the impact of the pandemic on the global economy. Later in the week, the greenback is expected to remain under the microscope in light of key data releases and the FOMC meeting, this time due on Thursday.

US Dollar Index relevant levels

At the moment, the index is gaining 0.57% at 93.87 and a breakout of 94.30 (monthly high Nov.3) would open the door to 94.74 (monthly high Sep.25) and finally 96.03 (50% Fibo of the 2017-2018 drop). On the downside, immediate contention emerges at 93.09 (monthly low Nov.3) followed by 92.47 (monthly low Oct.21) and then 91.92 (23.6% Fibo of the 2017-2018 drop).