US Dollar Index remains firm near 100.30

• DXY extends the weekly upside beyond the 100.00 mark.
• Broad-based risk aversion keeps dominating the global markets.
• House Price Index, EIA’s weekly report next on tap.

The greenback, in terms of the US Dollar Index (DXY), is prolonging the upbeat momentum beyond 100.00 the figure on Wednesday.

US Dollar Index propped up by risk-off trade

The index is advancing for the third consecutive session on Wednesday, looking to consolidate the breakout of the key barrier at 100.00 the figure and always underpinned by the prevailing risk-off sentiment.

In fact, the risk-associated complex remains under pressure on the back of unabated concerns over the devastating effects of the coronavirus on the economy, all morphing into extra legs to the buck and depressing US yields.

By the same token, the US Senate approved another relief package, this time worth $484 billion and oriented to lend extra support to the US economy and hospitals. The bill is expected to pass the House of Representatives on Thursday.

In the US data space, February’s House Price Index is due seconded by the usual weekly report on US crude oil supplies by the EIA.

What to look for around USD

DXY is extending the optimism in the first half of the week and manages to retake the area above the 100.00 barrier, although some resistance appears to have emerged near 100.50 for the time being. The recent improved sentiment in the dollar has been propped up by the “fly-to-safety” environment, as investors continue to prefer the dollar to the rest of the safe haven universe. In the meantime, all the attention remains on the COVID-19 amidst countries extending their lockdown periods, speculation of a global recession and further deterioration of fundamentals. On the supportive side of the buck, its status of “global reserve currency” and store of value underpins its safe haven preference.

US Dollar Index relevant levels

At the moment, the index is gaining 0.07% at 100.28 and a break above 100.48 (weekly high Apr.21) would aim for 100.49 (78.6% Fibo retracement of the 2017-2018 drop) and then 100.93 (weekly/monthly high Apr.6). On the flip side, the next support emerges at 99.18 (55-day SMA) seconded by 98.82 (monthly low Apr.15) and finally 98.27 (weekly low Mar.27).