US Dollar advances through 96.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The greenback, in terms of the US Dollar Index, is trading in multi-day tops beyond the 96.00 handle on Thursday.

    US Dollar boosted by ECB dovishness

    The (more-than-expected) dovish tone from Mario Draghi at today’s ECB meeting has boosted the demand for the US dollar, pushing the index to levels beyond the 96.00 mark, levels last seen in early October.

    In addition, auspicious results from the US docket via Initial Claims and Existing Home Sales have given extra wings to the greenback, despite the unexpected drop of the CB’s Leading Indicator.

    Furthermore, the index has briefly broken above the resistance area at the 96.00 handle (downtrend from August’s top at 98.40), although it remains to be seen if there is a follow through.

    US Dollar significant levels

    As of writing the US Dollar Index is up 0.97% at 96.00 and a breakout of 96.88 (monthly high Sep.25) would expose 97.01 (76.4% Fibo of 98.40-92.52) and then 98.40 (monthly high Aug.7). On the downside, the next support lines up at 94.76 (38.2% Fibo of 98.40-92.52) followed by 93.99 (uptrend from August low) and finally 92.52 (low post-PBoC move Aug.24).
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