US Dollar upside stalled near 92.80

After climbing as high as the 92.80 region, the upside momentum around US Dollar Index (DXY) run out of steam and is now retracing some ground towards the 92.60/55 band.

US Dollar firmer on data, USTs

The index has extended the rebound to fresh 3-day tops in the boundaries of 92.80 on Wednesday, mainly backed by the renewed selling bias in EUR while positive results from the US docket have also helped with the upside.

DXY grabbed extra traction today following the selling sentiment around EUR/USD, particularly after yesterday’s strong move beyond 1.2000 the figure. In addition, yields in the key US 10-year reference also rebounded around 6 bp since Tuesday’s lows in sub-2.09% levels, collaborating with the bid tone in the buck.

In the same line, better-than-expected readings from the ADP report (237K) and flash Q2 GDP (3.0%) lent extra legs to the greenback.

Looking ahead, USD should remain under pressure in light of the upcoming PCE figures due tomorrow and non-farm payrolls and the ISM manufacturing expected on Friday.

US Dollar relevant levels

As of writing the index is gaining 0.39% at 92.63 and a break above 92.87 (high Aug.30) would target 93.00 (10-day sma) en route to 93.20 (21-day sma). On the other hand, the next support aligns at 91.63 (2017 low Aug.29) followed by 91.51 (low Jan.15 2015) and finally 90.00 (psychological handle).