US Dollar assaulting 99.00, Trump eyed

The US Dollar Index – which gauges the buck vs. a trade-weighed basket of its major rivals – is inching higher on Wednesday, managing to retake the 99.00 handle and above, or daily highs.

US Dollar bid ahead of Trump’s tax reform

After bottoming out in fresh YTD lows in the mid-98.00s, the index managed to attract some dip buyers and sparked a correction higher back to the 99.00 handle and beyond so far.

The buck appears to have gathered traction following comments by US Treasury Secretary S.Mnuchin’s, who unveiled that the proposed tax reform would be ‘the biggest tax cut and the largest tax reform in the history of our country’. It is worth mentioning that the announcement on the tax reform will be later in the NA session (1730GMT).

USD is navigating its third consecutive week with losses, including a brief breakdown of the critical 11-month support line (currently at 98.84) and the key 200-day sma at 99.02, where it is now looking to sustain the recovery.

US Dollar relevant levels

The index is up 0.28% at 99.00 and a break above 99.24 (high Apr.26) would aim for 99.59 (38.2% Fibo of the April drop) and finally 100.07 (20-day sma). On the flip side, the next support aligns at 98.61 (low Apr.26) seconded by 98.56 (2017 low Apr.25) and then 96.94 (low Nov.4 2016).