USD Index – Limited correction to precede fresh push higher

Slobodan Drvenica Windsor Brokers

USD Index

The Dollar extends its gradual easing from new one-year high, with dips being so far limited (Friday’s long-tailed daily candle signals still strong bids).

End of month / quarter prompts some profit-taking as Dollar rallied for two consecutive months and on track for the biggest monthly gain (June) in eleven months.

However, traders may refrain from stronger action ahead of release US May labor data (due later this week) which is expected to add more details to overall picture of the US economy amid growing bets for rate hike in September, as inflation continues to rise and maintains pressure on the central bank.

With larger uptrend being intact, technical correction is expected to provide better buying levels for dollar’s fresh advance.

Initial supports lay at 100.70/60 (10DMA / Fibo 23.6% of 97.44/101.55 upleg), with psychological 100 level, reinforced by Fibo 38.2% retracement, to ideally contain correction and keep broader bulls intact for renewed attack at 101.55 (new 2026 peak) and open way for 102+ acceleration.

Res: 101.55; 102.00; 102.40; 102.67.
Sup: 100.81; 100.60; 100.38; 100.00.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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