US Dollar struggling to gather traction below 101.00

The greenback, in terms of the US Dollar Index (DXY), is alternating gains with losses on Tuesday around the key 101.00 area.

US Dollar attention to data

The index has started the week on a negative note, as sellers stepped in following last week’s tops near 101.50, levels last traded over a decade ago.

However, the broader bullish perspective for USD remains intact and well supported by the likeliness of further tightening by the Federal Reserve at its December meeting, while expectations of higher consumer prices in the next periods – particularly in the wake of Trump’s announcements of fiscal stimulus – have also lent legs to the USD rally.

In the data space, Existing Home Sales are expected to have eased a tad during October, while the Richmond Manufacturing Index is seen improving to 1 for the current month.

The up move in the dollar is also bolstered by speculative positioning, despite net longs have retreated to 4-week lows during the week ended on November 15, as shown by the latest CFTC report.

US Dollar relevant levels

The index is losing 0.13% at 100.92 facing the next support at 100.66 (low Nov.22) followed by 99.38 (low Nov.14) and finally 99.03 (20-day sma). On the upside, a break above 101.54 (2016 high Nov.18) would open the door to 102.19 (monthly high Apr.2003) and then 102.68 (monthly high March 2003).