US Dollar looking for direction above 101.00

The greenback – tracked by the US Dollar Index (DXY) – remains in a consolidative mode just above the 101.00 handle, in line with the general mood in the global markets.

US Dollar attention to data, FOMC

The index has regained the 101.00 mark on Tuesday, reverting a pullback to the 100.75/70 band following a generalized profit taking sentiment after last week’s fresh 13-year tops in the vicinity of 101.50.

USD is retreating for the first time after two consecutive weeks with gains, although the broader bullish perspective around the buck stays unaltered for the time being, always backed by a potential rate hike by the Federal Reserve next month and prospects of higher inflation in the US for the next periods.

The greenback will take centre stage later in the session in light of the slew of US data releases: Markit’s advanced manufacturing PMI for the current month, Durable Goods Orders, New Home Sales, Initial Claims, November’s final Consumer Sentiment and the FOMC minutes.

US Dollar relevant levels

The index is up 0.01% at 101.10 and a breakout of 101.54 (2016 high Nov.18) would open the door to 102.19 (monthly high Apr.2003) and then 102.68 (monthly high March 2003). On the flip side, the immediate support aligns at 100.71 (low Nov.22) followed by 99.38 (low Nov.14) and finally 99.17 (20-day sma).