FXStreet (Edinburgh) – After the failed attempt to extend the recovery beyond 96.80, the US Dollar Index receded some ground and is now hovering over the 96.50/45 band.

US Dollar clings to daily gains

The index is posting moderate gains so far, bolstered by the renewed buying interest around the greenback following the deep sell-off on Tuesday and Wednesday.

Auspicious prints from US Retail Sales during July (0.6% MoM) gave the dollar extra legs in early trade, although the bullish attempt run out of steam around 96.80, or session peaks. A cautious tone now seems to prevail amongst traders in light of the potential Fed’s lift-off in September, now somewhat reinvigorated after today’s positive readings.

US Dollar relevant levels

As of writing the index is up 0.2% at 96.47 and a breakout of 97.33 (high Aug.12) would aim for 97.59 (high Aug.11) and then 97.92 (high Aug.10). On the downside, the immediate support aligns at 95.92 (low Aug.12) ahead of 95.63 (low Jul.13) and finally 95.46 (low Jul.10).

After the failed attempt to extend the recovery beyond 96.80, the US Dollar Index receded some ground and is now hovering over the 96.50/45 band…

(Market News Provided by FXstreet)

By FXOpen