US dollar index consolidates at 3-week lows ahead of NFP

The US dollar is about to end Thursday with mix results in the currency market, on the day before of the NFP report and the day after the decision of the Federal Reserve. Greenback dropped mostly against commodity currencies, the yen, and the pound. 

Cable jumped from below 1.2300 to 1.2495 before easing to 1.2460, boosted by a UK Court ruling about the need for a Parliamentary approval before activating Brexit and also after the Bank of England announced that it kept rates unchanged and modify the previous easing bias toward a more balanced approach. 

The decline in the euro gave some support to the US dollar index, which gauges the US dollar against its main competitors. The index peaked today at 97.42  after the beginning of the American session but then turned to the downside, falling toward 97.00. It is about to end the day around 97.10, the lowest close since October 10. After yesterday’s Federal Reserve statement, attention now turns toward the NFP report. Also, US politics are having an impact on financial markets.

DXY Technical levels  

On the downside, the immediate support is seen around the 97.00 area, below here the next levels to watch could be located at 96.70/75 (Oct 6 high) and 96.35 (Oct 4 high / Oct 7 low). To the upside, resistance levels might lie at 97.40/45 (daily high), 97.75 (Nov 2 high) and 97.95 (20-day moving average). 

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