The US dollar was bid on Tuesday and was trading higher against all the major currencies, with the dollar index trading 0.45% stronger during the London session.
Earlier in the day, the EU PPU index accelerated further to 4.0% year-on-year from 3.6% scored previously, but the euro failed to capitalize on these news.
Market participants will now focus on the manufacturing ISM index for August, which is projected to moderate slightly from 58.1 to 57.7. Moreover, the prices paid subindex is also seen easing to 70.2 from 73.2 in July.
The price managed to hold the important bullish trend line is now jumping higher as investors used the dip to buy at better prices. Therefore, the main support is around 95.00 zone and if this level doesn’t hold, the greenback could deteriorate below the 94.00 mark.
On the upside, bears are defending the horizontal level of 95.60, where previous highs are located and should bulls be stronger in the near term, the next target could be at the current cycle highs near 97.00.