US Dollar Index recovery stalled ahead of 96.00, ISM eyed

• The index met some selling orders in the boundaries of 96.00.
• Yields of the US 10-year note between 2.73%/2.72%.
• US ISM Non-manufacturing next of relevance.

The greenback keeps the positive note unchanged so far today, although a test/break of the key 96.00 barrier still remains to be seen when tracked by the US Dollar Index (DXY).

US Dollar Index capped near 96.00, looks to data

The recovery in the greenback met a tough resistance in levels just shy of the critical barrier at 96.00 the figure, sparking the ongoing knee-jerk in tandem with a softer tone in yields of the key US 10-year benchmark.

In the meantime, investors continue to gauge recent results in the US calendar, which remain the exclusive sustain of the so far multi-session up move.

Moving forward, the key ISM Non-manufacturing coming up next, seconded by the IBD/TIPP index and the API report on crude oil supplies.

What to look for around USD

The greenback appears to have left behind the recent dovish message from the FOMC at its last meeting, re-shifting their focus to upcoming data releases. However, investors are expected to remain vigilant on the new neutral stance from the Federal Reserve, as well as any indication of the timing of the balance sheet run-off. Back to the trade front, President Trump and China’s Xi Jinping will meet on February 27-28 in Da Nang (Vietnam) to resume talks, while speculations of some sort of agreement is expected to weigh down the buck.

US Dollar Index relevant levels

At the moment, the pair is up 0.11% at 95.94 and a breakout of 96.17 (100-day SMA) would open the door to 96.22 (38.2% Fibo of the September-December up move) and finally 96.43 (55-day SMA). On the downside, immediate contention emerges at 95.35 (200-day SMA) followed by 95.16 (low Jan.31) and then 95.03 (2019 low Jan.10).