US Dollar off highs, back near 95.80

The greenback, tracked by the US Dollar Index, is now easing some pips after reaching fresh tops beyond the critical 96.00 handle.

US Dollar in 3-day tops

The index has advanced and tested fresh 3-day peaks just above 96.00 the figure as US yields are extending its march north. This time, the 10-year reference is trading at shouting distance from the 2.35% level, up from lows near 2.10% in mid-June.

USD is expected to trade in tandem with the broad risk-appetite trends today, as US markets will be closed due to the Independence Day holiday. The recent events from North Korea have motivated some flight-to-safety mood among investors, although the demand for USD was not so far benefited.

In the meantime, DXY managed to gather some buying interest around last week’s multi-month lows in the vicinity of 95.20, although the bearish note around the buck stays unchanged for the time being. As usual, US politics and the recent shift to a more hawkish tone from some G10 central banks acting as the main drivers behind the buck’s stance.

US Dollar relevant levels

The index is losing 0.08% at 95.87 facing the next support at 95.22 (2017 low Jun.30) followed by 94.95 (low Sep.22 2016) and finally 94.05 (low Aug.18 2016). On the other hand, a break above 96.05 (high Jul.4) would target 96.30 (10-day sma) and then 96.70 (21-day sma).


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