US Dollar fades the uptick to 94.90, remains bid

The greenback, tracked by the US Dollar Index, has extended its bull run to the vicinity of the 95.00 barrier on Monday, although its lost momentum soon afterwards.

US Dollar up on rate hike bets

The index has grabbed extra attention today on the back of swelling speculations on a probable rate hike by the Federal Reserve at some point in the next months.

Traders have shrugged off the recent dovish tone from the FOMC minutes, following instead comments by FOMC’s Lockhart, Dudley and Williams, who left the door open for higher rates at the September meeting.

FOMC’s VP S.Fischer has also collaborated with the upbeat sentiment around the greenback today after he stressed on Sunday that the US economy remains on track to reach full employment and the inflation target.

US Dollar relevant levels

The index is gaining 0.28% at 94.78 and a surpass of 95.11 (100-day sma) would open the door to 95.33 (50% Fibo of June-July up move) and finally 96.50 (high Aug.5). On the flip side, the immediate support lines up at 94.05 (low Aug.18) followed by 93.03 (low Jun.23) and then 91.88 (2016 low May 3).