Search ForexCrunch
  • The index moves higher to daily tops around 94.60.
  • US 10-year yields bounce off lows and retake 2.96%.
  • US Durable Goods expanded below estimates 1.0% MoM in June.

The greenback, in terms of the US Dollar Index (DXY) is now trading on the positive ground, extending the rebound to fresh tops in the boundaries of 94.60.

US Dollar rebounds from support line

The recent down move in the index met strong contention in the 94.10 area, where sits the key short-term support line off June’s lows, and is now approaching the initial interim target in the 94.60/65 band, home of the 10-day and 21-day sma.

The greenback is now picking up traction following the rapid drop in EUR/USD in the wake of the press conference by President Draghi, where he showed himself unconvinced regarding the sustainability of the inflation pressures.

In the US, June’s trade deficit widened to $68.33 billion, Initial Claims rose more than expected by 217K WoW and Durable Goods expanded less than forecasted 1.0% MoM during last month.

US Dollar relevant levels

As of writing the index is gaining 0.29% at 94.49 and a breakout of 94.59 (21-day sma) would target 94.63 (10-day sma) en route to 94.85 (high Jul.24). On the other hand, the next support is located at 94.08 (low Jul.26) followed by 93.71 (low Jul.9) and finally 93.19 (low Jun.14).