US Dollar Index recedes from tops above 96.50

• The index loses some momentum in the top end of the range.
• US 10-year yields find support in the 3.13% area.
• New Home Sales, Manufacturing/Services PMIs next on tap.

After printing fresh tops beyond 96.50, the US Dollar Index (DXY) is now easing some ground although it keeps the bid tone well and sound.

US Dollar Index up on sentiment

The index moved higher and recorded fresh 2-month peaks in the 96.50/55 band earlier in the session always on the back of increasing selling pressure in the risk-associated space.

In fact, rising concerns in the Italian political scenario coupled with lack of progress in the Brexit negotiations have been weighing on the European currency and the British pound, in turn favouring the demand for the buck.

In the US calendar, September’s New Home Sales are due seconded by preliminary gauges of the manufacturing and services PMIs and the weekly report on US crude oil inventories by the EIA.

US Dollar Index relevant levels

As of writing the index is gaining 0.46% at 96.39 facing the next hurdle at 96.98 (2018 high Aug.13) seconded by 97.87 (61.8% Fibo of the 2017-2018 drop) and then 99.72 (high May 10). On the downside, a breakdown of 95.59 (10-day SMA) would open the door to 95.47 (21-day SMA) and finally 94.79 (low Oct.12).