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US Dollar Index retreats from highs

FXstreet.com (Edinburgh) -The greenback, tracked by the US Dollar Index, is easing some ground after posting intraday peaks beyond 81.40.

DXY trimming losses

After last week’s pronounced sell-off, the world reserve managed to gather traction from multi-week lows below 81.00 the figure to session tops above 81.40. “Jitters in global equity markets are giving the USD some bid, but with a slew of US data releases ahead we are likely to re-establish the short USD long risk relationship until we head for early September with the next NFP release. This suggests that the upward trajectory in EUR/USD is probably not over yet, while USD/JPY which correlates well with positive US economic surprises is showing signs of stabilizing”, assessed Sebastien Galy, Strategist at Societe Generale.

DXY key levels

The index is now advancing 0.28% at 81.35 and a break above 82.50 (high Aug.2) would expose 83.12 (high Jul.15) and then 84.75 (high Jul.9). On the flip side, support levels align at 80.50 (low Jun.19) followed by 80.27 (low Feb.20) and finally 79.84 (low Feb.19).

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