FXStreet (Edinburgh) – After hitting session tops beyond the 98.00 mark, US Dollar Index has eroded those gains and is now trading back to the area around 97.70.
US Dollar capped by 98.30
The low-98.00s still remains quite a tough barrier for USD-bulls, confirmed once again today after another rejection around 98.30.
Positive results from the US labour market during July have initially boosted the greenback to the upper band of the range, although the rally run out of vigour and prompted investors to sell the dollar, dragging it all the way down towards 97.60.
While the data leave the door open for a potential Fed’s lift-off in September, the renewed softness around USD could be indicative that markets still need to see further improvement in other indicators.
US Dollar relevant levels
As of writing the index is losing 0.09% at 97.74 with the immediate support at 97.52 (low Aug.7) followed by 97.21 (low Aug.4) and finally 96.29 (low Jul.27). On the flip side, a breakout of 98.46 (high Apr.21) would target 98.73 (high Apr.16) en route to 99.18 (high Apr.9).
(Market News Provided by FXstreet)