Yellen pushes USD to test 95.00, just to drop afterwards

An unexpected hawkish tone by Chair J.Yellen has lifted the US Dollar Index to fresh tops in levels just shy of the 95.00 handle on Friday, although the move proved to be ephemeral.

US Dollar back to negative near 94.50

After a jump to the vicinity of 95.00 the figure, the US Dollar Index has regained downside traction and is now flirting with session lows in near 94.40.

At her remarks at Jackson Hole, Yellen argued that a case for hiking rates has strengthened in recent months, while the Committee deems appropriate a gradual path for rate hikes.

Yellen also said that the economy remain on its way to reach targets in employment and price stabilization, and she now expects consumer prices to hit the 2% target over the next few years.

On another direction, US Consumer Sentiment tracked by the Reuters/Michigan index dropped to 89.8 for the current month, missing estimates.

US Dollar relevant levels

The index is losing 0.41% at 94.29 and a breach of 94.05 (low Aug.18) would aim for 93.03 (low Jun.23) and then 91.88 (2016 low May 3). On the upside, the next resistance lines up at 94.94 (high Aug.22) ahead of 95.22 (20-day sma) and finally 96.50 (high Aug.5).