US dollar index breaks higher, ends at highest since March

The US dollar rose across the board on Thursday. It started to gain ground during the Asian session and kept rising over the day. It extended gains after the ECB decision and Draghi’s press conference, particularly against the Euro and the Swiss franc. 

The Greenback receive some support in the market from US data: the Philly Fed Manufacturing Index and Existing Home Sales rose above expectations while on the negative side, Initial Jobless Claims rose more than expected during last week (260K vs 250K). 

The event of the day was the ECB decision. Draghi signaled that at the next meeting (December 8) the central bank will decide on an extension of the purchase program. The euro lost ground in the market after the press conference boosting the US dollar index. 

The DXY broke above 98.10 and jumped to 98.35, hitting the highest level since March. Then pulled back, finding support at 98.10. It was about to end the day hovering around 98.25, up 0.46% for the day and holding a strong bullish tone.

Technical levels 

To the upside, resistance levels could be seen at 98.35 (Oct 20 high), 98.59 (Mar 3 high) and 99.00 (psychological). On the downside, support could be located at 98.10 (Oct 13, 14 & 17 high), followed by 97.55 (Oct 18 low) and 97.45 (Oct 12 & 13 low).