US Dollar clings to gains above 100.00

The US Dollar Index – which gauges the buck vs. its main rivals – is not giving up on Tuesday, managing to bounce off lows near 99.90 and retake the 100.00 mark and beyond.

US Dollar holding on to 100.00

The index is so far advancing for the first time after three consecutive daily pullbacks and always against the backdrop of a generalized selling mood around the buck.

Furthermore, USD is recording its fifth consecutive week with losses, trading around the 50% Fibo retracement of the November/December up move around the 100.00 neighbourhood, as Trumphoria sentiment continues to fizzle out.

In the data space, mixed results from the US docket saw advanced Markit’s manufacturing PMI expected to come in above expectations for the current month, while Existing Home Sales have surprised markets to the downside in December.

Adding to the bearish note surrounding the Dollar, speculative net longs have dropped to 9-week lows during the week ended on January 17, as shown by the latest CFTC report.

US Dollar relevant levels

The index is gaining 0.10% at 100.05 and a breakout of 100.75 (high Jan.23) would aim for 101.29 (55-day sma) and finally 101.71 (high Jan.16). On the downside, the immediate support aligns at 99.88 (low Jan.24) followed by 99.49 (low Dec.8) and then 99.20 (100-day sma).