US Dollar Index reverts the drop and regains 95.70 and above

• The index finds support in the mid-95.00s on Monday.
• Yields of the US 10-year note hover around 3.20%.
• Chicago Fed National index only due later in the NA session.

The US Dollar Index (DXY), which gauges the buck vs. its main competitors, has managed to revert the initial pessimism and regains the 95.70/75 band.

US Dollar Index looks to data, risks

The index is now seeing some recovery after Friday’s sharp sell off, which has so far met support in the 95.40 zone, where sits the 10-day SMA.

Alleviated concerns over Italian politics have lent some support to the sentiment in the risk-associated space earlier in the session, forcing the greenback to recede further and test fresh 3-day lows. However, the knee-jerk was short-lived and dip-buyers are now pushing the index back into the positive ground near 95.80.

In the data space, the sole publication today will be the Chicago Fed National Activity Index for the month of September.

US Dollar Index relevant levels

As of writing the index is up 0.10% at 95.77 facing the next hurdle at 96.09 (high Oct.19) seconded by 96.16 (high Oct.9) and then 96.98 (2018 high Aug.13). On the flip side, a breakdown of 95.44 (10-day SMA) would open the door to 95.27 (21-day SMA) and finally 94.79 (low Oct.12).