US Dollar looks for direction around 94.00

• Upside momentum in USD seen fading near 94.00
• Attention stays on Trump’s decision on next Fed Chief
• Durable goods orders and new home sales in the US docket today

The US Dollar Index, which tracks the buck vs. a basket of its main rival currencies, is alternating gains with losses in a tight trading range around the 94.00 handle so far on Wednesday.

US Dollar focused on yields, data

The upbeat mood around the greenback stays well and sound during the first half of the week, although a more sustainable break above the 94.00 handle still remains elusive and seems to be waiting for a stronger catalyst.

In the meantime, yields of the key US 10-year reference have managed to reclaim levels beyond the 2.40% handle, area last seen in late March, sustaining further the up move in DXY.

In addition, USD stays vigilant on headlines coming from the US political scenario regarding the tax reform proposed by the Trump’s administration. It is worth mentioning that it could be implemented at some point towards year-end.

Further out, investors are waiting for President Trump to name the successor of Chairwoman J.Yellen, with hawkish candidate J.Taylor still the front-runner vs. FOMC’s J.Powell and former FOMC governor K.Warsh.

In the data space, September’s new home sales are next on tap along with durable goods orders and the weekly report on US crude oil inventories by the EIA.

US Dollar relevant levels

As of writing the index is down 0.01% at 93.94 and a breakdown of 93.68 (low Oct.24) would aim for 93.50 (10-day sma) and then 93.06 (low Oct.19). On the other hand, the next hurdle aligns at 94.07 (100-day sma) followed by 94.27 (high Oct.6) and finally 95.90 (38.2% Fibo of the 2017 drop).