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US Dollar Index bouncing off lows

FXstreet.com (Barcelona) - The greenback, measured by the US Dollar Index, is back to the 83.70 region on Wednesday, gathering some ground after bottoming around 83.50/55.

The rally of the world’s reserve seems to have run out of steam in the recent multi-month tops around 84.30/60, propped up by mounting rumours regarding the likeliness of the Fed scaling back its monthly asset purchases, although there is no hint at the timing. However, Chairman Bernanke and many other Fed’s officials have come to the conclusion that more data is needed in order to bring into consideration such an action.

As of writing, the index is down 0.55% at 83.71 and according to tradingcentral.com, the next support lines up at 83.45, 83.30 and 83.10 while resistance levels align at 83.95, 84.10 and 84.20.

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