USD recovers during the American session

Greenback reversed its trend in the market during the American session and erased losses across the board and rallied versus the Japanese yen amid a rally in equities in Wall Street and with rising US-bond yields. In the US, the Dow Jones is up by 0.75% and the Nasdaq gains 0.58%.

Among the top performers during the day are the Loonie and the Mexican peso, both boosted by the rally in crude price. The WTI went from negative territory to rise more than 4%.

During the last hours, Greenback rose particularly versus the yen and the euro that pushed the US Dollar index, from 95.50 to the 95.80 area where currently trades, in positive territory for the first time after a 2-day decline. The DXY peaked at 95.83 but the upside was capped so far around 95.80 that is a relevant price level to consider.

If the US dollar continues to rise the next resistance level could be seen at 96.00/05 (Aug 8 low) follow by 96.20 and 96.45/50; the last one is a key zone that if it is broken it could open the doors to more gains. To the downside, support might be seen at 95.50 (Aug 3 high), 95.30 (Aug 10 low) and 95.95 (Aug 3 low).

Friday is the key day of the week for US economic data, with the release of the Producer Price Index and retail sales numbers, that could have an impact on the US dollar.