Dollar Index rises modestly on a quiet session

• DXY hits fresh highs above 93.50.
• Greenback gains momentum after US housing data. 

The US dollar gained momentum during the American session but price action continues to be limited on a calm session ahead of Christmas holidays. 

DXY moves (slightly) higher 

Like most of the pairs of the currency market, the US Dollar Index moved in a modest range during most of the day, until recently it broke to the upside. The DXY peaked at 93.51 but it was still unable to extend gains above 93.50. 

Earlier today, US economic data was released. The annual core-PCE price index, rose to 1.8% from 1.6% in November. Personal spending rose by 0.6% in November while Personal Income rose 0.3% (below the 0.4% expected). On another report, new home sales jumped 17.5% in November, significantly above expectorations; the annual rate rose to 733K surpassing the 654K expected. It was the biggest monthly rise in 25 years. The last report was the Consumer Confidence Index measured by the University of Michigan that dropped unexpectedly to 95.9. 

Housing data was partially offset by Consumer Confidence and limited the upside in the greenback. As of writing the DXY trades at 93.48, up 0.12%. 

DXY Technical levels 

Not much volatility is expected for today. Above 93.50 the resistance level might be located at 93.70 and 94.00 (Dec 15 high). On the flip side, support could be seen at 93.30 (Dec 22 low),  93.15 (Dec 20 low) and then 93.00.