US Dollar Index above $90 as the market awaits the NFP on Friday

• The US Dollar Index (DXY) is benefiting from the easing of tensions between the US and China.
• The US Dollar index is consolidating in a range above $90.

The US Dollar Index is trading at around 90.31 up 0.27% on Thursday as the greenback is being supported with the prospect of a diplomatic agreement between the US and China on the issue of trade tariffs. The two nations are coming to the conclusion that a trade war would not benefit either party. 

The US Dollar is mainly driven by the sentiment on Thursday as three main equity indices, the S&P 500, the Dow-Jones and the tech-heavy Nasdaq are all rebounding from their lows made earlier in February and forming a double bottom pattern in the process. On the other hand, gold is under pressure since Wednesday and trading below the $1,330 mark. 

Friday will see the Non-Farm Payroll (NFP) in the United States. The forerunner of the government's NFP was published this Wednesday with ADP employment change reaching  241K versus 205K expected by analysts. 

US Dollar Index weekly chart

The bulls are targeting $90.94 cyclical high. If breached the bulls can target the $92.50 swing low. 

US Dollar Index Daily chart

The market is currently being supported by the 50-period simple moving average and the $90 handle. 

US Dollar Index 4-hour chart

Support is seen at $89.82 and $89.25 swing low. Resistance is seen at $90.45 and $90.94 swing high.