US Dollar regains 95.50 and above, Yellen eyed

The greenback, in terms of the US Dollar Index, is now trading on a better mood around the 95.50 area ahead of the key testimony by Chief J.Yellen.

US Dollar supported near 95.30

After bottoming out in the 95.30 region in early trade, the index has managed to regain some buying interest while market participants continue to wait for the testimony by Chief J.Yellen before the House Financial Services Committee.

The buck suffered the dovish tone from FOMC’s L.Brainard on Tuesday, who advocated for a more gradual tightening by the Federal Reserve in order to boost inflation back to the 2% target. Brainard also suggested that the Fed should start reducing its balance sheet anytime soon.

Adding to USD weakness, Donald Trump Jr. was in the centre of the debate on Tuesday in another episode of the US-Russia scandal, after media cited he met with a Russian lawyer to get compromising information on Democrat candidate H.Clinton.

Looking ahead, the greenback should stay under pressure in light of the testimony by Chair J.Yellen, seconded by the speech by KC Fed E.George (2019 voter, hawkish) and the Fed’s beige Book.

US Dollar relevant levels

The index is losing 0.01% at 95.48 and a breach of 95.30 (low Jul.12) would open the door to 95.22 (2017 low Jun.30) and then 94.95 (low Sep.22 2016). On the upside, the next up barrier emerges at 95.69 (10-day sma) seconded by 96.25 (high Jul.5) and finally 96.32 (high Jun.28).