Dollar index touches a high of 95.50 and is up by more than 0.3% on the day
Will this be where buyers falter yet again? Right now, price is closing in on a test of the 21 June high @ 95.53. But beyond that, there is also resistance seen @ 95.65 from the high in July.
For buyers, it is all about securing a firm break of those levels and more importantly establish a daily close above them. That will provide a good platform to build on to extend the upside move to another leg. Otherwise, yet another rejection here will only serve to incentivise bears even more and possibly convince certain quarters of the market that this is just about as good as it gets for the dollar.
While the latter argument is still too early to call, the sure thing now is that more work needs to be done by buyers in order to extend the rally to the next leg.
The greenback has been getting some added benefit from the continued weaker yuan fixing by the PBOC and today's case certainly played some part in helping to give the dollar a lift as well. So, that will be something to keep an eye on as well if you're looking for dollar-supportive factors.
Either way, if you're trading dollar pairs this is something to keep an eye out for in the coming sessions - as has been the case over the last two months or so.
Here's the bigger picture of the dollar index:
