US Dollar holds $90 amid trade war tensions and US-data

• The ISM Non-Manufacturing PMI decelerated to 58.8 in March while ADP employment report saw 241K new jobs added in the US.
• The US Dollar Index is trading in a tight range near the $90 mark.

The US Dollar Index (DXY) is trading at around $90 up slightly down on Wednesday as the main sentiment driving the market is the escalating trade war between the US and China and the fears of a global downturn. 

The main macroeconomic event of this week will be on Friday with the US Non-Farm Payroll out for March. The AFP employment report that is considered a forerunner of governments report on Friday though surprised on the upside with 241K new jobs added in March. 

Loretta J. Mester, the president and chief executive officer of the Federal Reserve Bank of Cleveland is set to speak at 15:00 GMT. 

Freshly released in the US, the ISM Non-Manufacturing PMI in March decelerated to 58.8 from 59.5 last month, while Factory Orders month-on-month in February came below expectations at 1.2% versus 1.7%. Additionally, the Markit Services PMI in March also came below expectations at 54 from 54.1 the month earlier. 

US Dollar Index weekly chart

Since late January the market has been range bound between the $88.50 and $90.55 level. The market is currently testing the higher part of the range. 

US Dollar Index daily chart

The greenback is currently using the $89.90 level and the 50-period simple moving average as support. 

US Dollar 4-hour chart

The market is trading in a tight range between the $89.80 and $90.20 level since last Thursday. Support is seen at $89.90, low of the range and $89.25 swing low. Resistance is seen at $90.20, top of the range and $90.94 swing high.