US dollar index rises for the fifth day in a row

The US dollar remained strong in the market and also gained ground on Tuesday but the rally appears to be fading. The US dollar index, boosted by gains of the US dollar against the Euro, the Swiss franc and particularly the Yen, peaked at 100.22, the highest level since early December of last year. 

During the last hours it remained near the highs, trading between 100.22 and 100.05; consolidating minor gains. It was about to post the fifth daily gain in a row. 

Supported by Fed’s officials, data and politics 

Stronger-than-expected data on US retail sales and also in the reading of the Empire State Manufacturing index boosted the Greenback before Wall Street opening bell. Meanwhile, FOMC members continue to talk about discussing a rate hike at the next meeting. In the political arena, during the afternoon, Republicans unanimously nominated Paul Ryan to continue as speaker of the House of Representatives. 

Tomorrow US economic data includes the Producer Price Index and Industrial Production numbers while on Thursday will be the turn of the Consumer Price Index. 

DXY Technical levels 

To the upside, resistance could be seen at 100.22 (daily high), 100.50 (Nov 2015 highs) and 100.60 (Dec 3, 2015, high). On the opposite direction support levels might be seen 99.95, 99.40 (daily low) and at 99.10 (last week high).

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DXY from Tip TV Productions on Vimeo.