US Dollar Index on recovery mode hits 1-week highs

• USD up across the board amid Fed rate hike expectations. 
• DXY rising for second day in-a-row breaks 4-day range. 

A stronger greenback across the board at the beginning of the week boosted the US Dollar Index (spot) to the upside. It broke a 4-day range and reached the highest levels since December 29.  

DXY above 92.00

The decline of the EUR/USD below the 1.2000 area boosted the DXY. During the American session, it peaked at 92.39 and then pulled back modestly. It is trading at 92.28, headed toward the second daily gain in a row. 

The greenback is being supported by rising expectations of a March rate hike from the Federal Reserve following last week data. Over the coming days, key US data includes CPI on Thursday and retail sales on Friday. 

Last week, DXY bottomed at the key support area around 91.75/80. It tested that level for the last time on Friday after the NFP report and then rebounded. Today it is holding above 92.25 (last week highs) attempting to extend the recovery. 

Levels to watch 

To the downside, the immediate support is seen at 92.25, a consolidating below would remove the intraday bullish tone. The next support might be seen at 92.00 and then the key 91.75/80 region. On the upside, resistances could be located at 92.38/40 (daily high), 92.60 (Dec 1 low) and 93.00.