US Dollar Index finishes the week above 96.00 as an ascending-triangle targets 98.00

The US Dollar Index, also known as DXY, which measures the greenback’s performance against a basket of six rivals, slides 0.19%, sitting at 96.04 during the day as the New York session wanes, at the time of writing. The market sentiment was upbeat as the Wall Street session closed, with major US equities finishing in the green recorded gains between 0.60% and 1.13%.

In the US bond market, Treasury yields in the short-maturity of the curve fell with 2s, 5s, and 10s dropped between 1-3 basis points, ended at 0.6544%, 1.2467%, and 1.482%, each. In the long-term of the curve 20s and 30s, gained between 1-1.5 basis points, sat at 1.9138% and 1.88%, respectively.

Apart from that, the US dollar was left at the mercy of the US inflation figures. On Friday, the Department of Labor reported that the Consumer Price Index for November on an annual basis rose to 6.8%, in line with estimations, and higher than October’s reading at 6.2%. Further, the Core CPI, which excludes food and energy, rose to 4.9%, as foreseen though more elevated than October’s 4.6%

Later on the day, the University of Michigan Consumer Sentiment for December rose to 70.4 from 67.1 in November. 

US Dollar Index (DXY) Price Forecast: Technical outlook

The US Dollar Index finished the week above the 96.00 figure for the second week in a row. The DXY is in a clear uptrend, and through the last couple of weeks, price action consolidated around the 95.50-96.50 range, forming an ascending triangle in an uptrend.

In the event of breaking to the upside of the formation, the ascending triangle target would be 98.00, but it would find some hurdles on the way up.

The first resistance would be 97.00, followed by June 30 high at 97.80, followed by the ascending triangle target at 98.00.