Dollar index accelerates and rises for the third day in a row

The US dollar rose across the board on Tuesday and it was consolidating gains near the end of the American session. Greenback climbed even against the Japanese yen despite a retreat of equity prices in Wall Street.

The greenback, tracked by the US Dollar Index, started the day below 95.50 and recently peaked at 96.07, the highest level since August 9 and it was hovering around 96.00, up 0.50% for the day. It is gaining ground for the third day in a row and for the fifth time out of the last six trading days.

According to the CME Group FedWatch that presents the probability of FOMC rate move, the odds of a September rate hike rose today from 21% to 24%, supporting the US dollar rally in the market.

US Dollar relevant levels

To the upside, resistance levels might be seen at 96.35 (200-day SMA) ahead of 96.50 (Aug 5 high) and then 96.85 (Jan 27 high). On the other hand, support could be located at 95.75 (Aug 29 high), 95.45 (daily low) and 95.25 (20-day SMA).