US dollar consolidates modest gains

Greenback rose on Monday against the yen and its main European competitors and lost ground against commodity and emerging market currencies. The  US Dollar index (DXY) rose again but remained at all times below last week highs.

On Friday, after the release of the US employment report, the index jumped to 96.44 and ended the week at 96.10. Today it peaked after the beginning of the American session at 96.37 and it was hovering around 96.25/28, up 0.28% for the day.

DXY up for the fourth day in a row, still under 20-SMA

The index is about to post the fourth daily gain in a row and still holds a bullish tone. But the area around 96.40/50 is becoming a strong resistance. Around that level, the 20-day simple moving average currently stands. In order to clear the way for more gains, greenback needs to break higher and hold on top. The next resistance is seen around 96.80 (June highs).