US Dollar tests highs near 96.40

The US Dollar Index, which tracks the buck vs. its main rivals, is now looking to extend the rebound towards the 96.40 area, or daily highs.

US Dollar focus on risk, Fedspeak

Choppy week for the index so far, with USD now reverting two consecutive sessions with losses although keeping the trade above the 96.00 limestone.

USD remains under pressure in light of the ongoing rebound in the risk-on sentiment, prompting the index to recede from recent tops in the 96.80 area.

Next on tap for USD will be the usual weekly report on the US labour market along with Producer Prices and speeches by FOMC’s D.Lockhart (neutral, non-voter) and E.George (hawk, voter).

US Dollar relevant levels

The index is gaining 0.12% at 96.34 and a breakout of 96.86 (high Jun.27) would open the door to 97.09 (high Mar.16) and finally 98.58 (high Mar.1). On the flip side, the immediate support lines up at 95.61 (20-day sma) ahead of 95.38 (low Jul.5) and then 94.90 (55-day sma).