USD index on the run in Asia, tests 5-DMA

Dollar index (DXY) strengthened in Asia to 96.00 levels (5-DMA) following a sharp rebound from a daily 50-MA on Thursday.

Capped between 5-DMA and 10-DMA, eyes retail sales data

At 95.95, the index finds itself stuck between 5-DMA and 10-DMA levels of 96.00 and 95.84 respectively. The main event for the day is the advance US retail sales release, which is likely to show growth slowed to 0.4% in July from 0.6% in June.

Ahead of the retail sales release, China data could influence the broader market sentiment and demand for the US dollar. Meanwhile, Eurozone GDP figures could come and go without much fanfare unless there is a major upward/downward revision.

Dollar index Technical Levels

A break above 96.00 (5-DMA) would open doors for a rally to 96.57 (200-DMA).On the lower side, breach of support at 95.63 (50-DMA) could yield a re-test of 95.11 (100-DMA).