- DXY is holding onto gains around 92.60 on Friday.
- US retail sales surprised to the upside in June.
The dollar is still on track to close the week with moderate gains, with the US dollar index (DXY) navigating the 92.60 region so far this Friday.
US Dollar Index limited around 92.80
The index holds offered tone well and solid in the second half of the week, although it has once again failed to break above key 92.80 / 85 resistance.
The dollar regained bullish traction after Wednesday’s selloff as market participants took in both of President Powell’s testimonies, while some Fed speakers advocated a reduction in QE earlier.
Additionally, US yields at the bottom of the curve manage to outrun recent lows, providing additional support to the dollar.
Earlier in the session, US retail sales surprised to the upside by expanding 0.6% MoM in June, up 1.3% excluding the auto sector (major sales).
Technical levels
Now the index is gaining 0.11% to 92.66 and a breakout of 92.84 (July 7 monthly high) would open the door to 93.00 (round level) and finally 93.43 (March 21, 2021 high). On the other hand, the next barrier to the downside is lined up at 91.51 (June 23 weekly low) followed by 91.37 (200-day SMA) and finally 89.53 (May 25 monthly low).
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