US Dollar Index Price Analysis: Remains poised to recapture 101.00
|- The US dollar index climbs to retest Thursday’s high of 100.76.
- Firmer yields, inflation and Ukraine risks keep the safe-haven dollar underpinned.
- The DXY has more room to rise, looks to regain 101.00
The US dollar index (DXY) is holding onto the latest advance well above the 100.50 barrier, as bulls keep their sight on the previous week’s high of 100.76.
The buying interest around the dollar gauge remains unabated amid the uncertainty over the Ukraine crisis and China’s covid lockdowns, which are disrupting supply chains and sending inflation through the roof via surging commodities prices.
This, in turn, flags risks of a global recession, directing the risk-off flows into the safe haven buck. Additionally, rallying US Treasury yields on the hawkish Fed’s outlook and commentary add to the upside in the dollar.
Technically, the index has more room to rise and could briefly recapture the 101.00 after the price yielded an upside break from the rectangle pattern on April 5.
The bullish confirmation triggered a fresh uptrend in the DXY, with the pattern target now seen at 101.08. Ahead of that, bulls need to take out Thursday’s high.
The 14-day Relative Strength Index (RSI) looks north well above the midline, backing the bullish case.
On the flip side, the 100.50 level will be the initial demand area, below which sellers will accelerate control towards the April 12 highs of 100.33.
The dollar bears would then look to test the 100 psychological mark.
US Dollar Index: Daily chart
US Dollar Index: Additional levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.