The dollar keeps soaring
During the European time on Tuesday (May 29), the U.S. dollar index (93.5707, 0.0320, 0.03%) again recaptured action energy and rushed past the peak of 94.50 years.
At present, the dollar’s gains remain the same and it’s heading for the 94.70 area, which is a new high this year, and has made a higher post since last November.
The "Special Fair" will be re-introduced on the agenda next month and Sino-US trade negotiations will continue.
In addition to optimism around the dollar, political risk has continued to suppress one of the main rivals of the dollar, the euro (1.1788, -0.0005, -0.04%), making the EUR/USD fall below the key support level of 1.1600. The new Italian government gave up its cabinet and faced a re-election in September. The Spanish prime minister also faced a vote of no confidence in Catalonia on Friday.
However, the yield on the US 10-year Treasury bond, one of the pushers behind the rise in the US dollar, has continued to decline, and has now fallen to near 2.98%.
In terms of data, during the North American time today, the United States will publish the Conference Council consumer confidence index and the S&P/CS metropolitan housing price index.
U.S. dollar index focuses on technical positions
According to technical analysis, the next resistance level for the U.S. dollar index will be 95.15 (monthly high in October/November 2017), then 96.51 (July 4, 2017 high). On the downside, if it breaks below 93.87 (10-day simple moving average), it will continue to decline to 93.30 (May 21 low), then 93.26 (21-day simple moving average).