US Dollar Index turns positive on the day near 97

• Greenback gathers strength despite mixed data.
• 10-year T-bond yield rises above 3.07%.

The US Dollar Index, which tracks the greenback against a basket of six major currencies, slumped to a daily low at 96.66 during the European trading hours before staging a rebound in the second half of the day. As of writing, the index, which recently touched the 97 mark, was up 0.03% on the day at 96.98.

Today's data from the United States showed that the Chicago Fed's National Activity Index rose to 0.24 in October from 0.14 in September. "Only one of the four broad categories of indicators that make up the index increased from September, but three of the four categories made positive contributions to the index in October," the Chicago Fed said in the publication. Later in the day, the monthly report published by the Federal Reserve Bank of Dallas revealed that the manufacturing activity in the region lost momentum with the headline business activity falling sharply to 17.6 to miss the analysts' estimate of 25.

Despite the mixed data, however, an upsurge witnessed in the 10-year T-bond yields provided a boost to the greenback. Additionally, the improved market sentiment allowed the USD/JPY pair to advance to a 10-day high above 113.50 and supported the DXY's rally.

Later this week, markets will be paying a close attention to the preliminary third-quarter GDP data from the U.S., which is expected to remain steady at 3.5% on a yearly basis.

Technical levels to consider

With a daily close above 97 (daily high/psychological level), the index could target 97.40 (Nov. 15 high) and 97.70 (Nov. 12 high/2018 high). On the downside, supports are located at 96.70 (20-DMA), 95.90 (50-DMA), and 95 (psychological level).