US Dollar holding on above 93.00

The greenback, when tracked by the US Dollar Index (DXY), has started the week on a positive footing and is now looking to advance further north of the 93.00 limestone.

US Dollar in 3-day peaks

The index is up for the third straight session, adding to Friday’s ‘doji-like’ candle after critical US inflation figures measured by the CPI disappointed expectations during the month of September.

However, USD is also deriving strength from yesterday’s comments by Chief J.Yellen, who stressed the solid pace of the US economy and the healthy labour market, both calling for further tightening via rate hikes despite inflation stays laggard.

Looking ahead, the regional manufacturing gauge by the NY Empire State index is next on tap ahead of the Federal Budget Balance.

Adittionally, speculators took their USD net shorts positions to the highest level in the last two weeks in the week to October 10, as per the latest CFTC report.

US Dollar relevant levels

As of writing the index is gaining 0.17% at 93.08 and a break above 93.41 (10-day sma) would open the door to 94.03 (23.6% Fibo of the 2017 drop) and finally 94.27 (high Oct.6). On the downside, the immediate support lines up at 92.80 (low Oct.12) seconded by 91.53 (low Sep.20) and then 91.01 (2017 low Sep.4).