The dollar index continues to trend higher and trading near the highest in two months, driven by growing prospects of further Fed rate hikes, so far unaffected by loser oil prices, which may ease inflationary pressures.
Today’s break above Fibo barrier at 100.32 (61.8% of 101.48/98.44, also top of descending daily Ichimoku cloud) generated fresh bullish signal.
Close above this level is needed to confirm the signal and keep bulls fully in play for attack at 100.76 (Fibo 76.4%) guarding 101.00 (round figure) and key barrier at 101.48 (July 28 peak, the second highest in 2026).
Bullish daily techs (price above the cloud / very strong positive momentum / MAs in full bullish configuration) support the action, but overbought conditions may slow the action.
Dips should be ideally contained by 100.32 (reverted to solid support), while return below 100 would dent bullish near-term structure.
Traders will also continue to closely monitor the situation in the Middle East and developments over US-Iran peace talks, another key market driver.
Res: 100.59; 100.76; 101.00; 101.48
Sup: 100.32; 100.00; 99.75; 99.42
