The US Dollar Index (USDX) – which gauges the value of Greenback against a basket of 6 pairs- inched higher on Friday, increasing the price of dollar index to more than 103.00 amid some key fundamental events. The technical bias remains bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the US Dollar Index is being traded near 102.96. A hurdle can be seen around 103.00, the short term horizontal resistance area ahead of 103.10, the swing high of the recent upside rally and then 103.58, the swing high of the last major upside wave as demonstrated in the given below chart.

On the downside, the index is likely to find a support around 102.86, the trendline support area ahead of 102.72, the horizontal support and then 102.54, the swing low of the giant bullish pin bar as can be seen in the above chart.

US Home Sales

Sales of previously owned U.S. homes unexpectedly increased in November to the strongest level since early 2007, ahead of a jump in borrowing costs, National Association of Realtors data showed Wednesday. Sales have kept chugging along in the industry’s quieter selling season, buoyed by consistent job gains as well as increases in consumer and business optimism reflecting expectations that President-elect Donald Trump will relax burdensome regulations. Mortgage rates at more than two-year highs could make it difficult for some borrowers to qualify for a loan, while limited inventory, partly due to scarcities of skilled labor and available lots in the new-home market, keeps property prices elevated.

Trade Idea

Considering the overall technical and fundamental outlook, buying the index around current levels appears to be a good strategy in short to medium term.