US Dollar Index looks firmer above 93.00

• DXY surpasses the 93.00 barrier and clinches 4-day highs.
• Optimism around a coronavirus vaccine keeps running high.
• MBA’s Mortgage Applications shrunk 0.5% WoW.

The dollar’s upbeat momentum stays well and sound and pushes the US Dollar Index (DXY) further north of the key 93.00 mark on Wednesday.

US Dollar Index in multi-day tops

The index resumes the upside on Wednesday following Tuesday’s inconclusive price action and adds to Monday’s strong move up.

The dollar’s momentum appears supported by renewed selling pressure hurting the euro, while markets keep building on recent gains following Pfizer’s announcement of its coronavirus vaccine.

Almost no news from the US data space, with only weekly MBA’s Mortgage Applications contracting 0.5%.

What to look for around USD

DXY’s recovery appears so far capped by the 93.00 area. In the meantime, the dollar remains focused on the US post-elections scenario, where all the looks are upon (still) President Trump and his potential attempts to contest some results in several states. On the more macro view, the impact of the second wave of the pandemic on the global economy could favour the occasional re-emergence of the risk aversion and therefore lend some support to the buck, while extra progress regarding vaccines against the COVID-19 should support momentum in the risk complex. Further out, the “lower for longer” stance from the Federal Reserve is expected to keep limiting potential serious upside in DXY.

US Dollar Index relevant levels

At the moment, the index is advancing 0.40% at 93.08 and a breakout of 93.14 (monthly high Nov.11) would open the door to 93.29 (55-day SMA) and finally 94.30 (monthly high Nov.4). On the other hand, immediate contention emerges at 92.13 (monthly low Nov.9) followed by 91.92 (23.6% Fibo of the 2017-2018 drop) and then 91.80 (monthly low May 2018).