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).