The US Dollar has been taken back into the control of the bulls as the US Dollar index (DXY) has resurged in confluence to the persistent inflationary theme. Data over the last several days has turned the screw and flipped the script with regard to the timings of a Federal Reserve pivot, resulting in higher Treasury yields and a projected 5.3% terminal Fed funds rate.
The current bullishness of the US Dollar has left many investors wondering if the US Dollar has room to go on the upside until any major-looking resistance is seen. To answer this question, it is important to take a look at the DXY monthly chart.
The monthly chart shows that there have been plenty of reactions from the recent lows near 101.00 over many months of history in the DXY index. If the index is going to continue to use that as a support base, then the next area of liquidity for the greenback as per the DXY chart is likely to be near 105.35. This is the 38.2% Fibonacci retracement and is an area of interest for the bulls.
On the weekly chart, 106 is seen as a clear target and resistance area. Meanwhile, on the daily chart, the 104.30s were pinned but there is room to go on the upside following the correction into old resistance that is now acting as a support structure.
In conclusion, the bulls are targeting a move from today’s highs to the start of the year’s highs near 105.35. This is an area of interest for the bulls and could be a potential entry point. If the US Dollar continues to rise, the bulls could target 106.00 thereafter.
The US Dollar has been a hot topic in recent weeks, with many investors wondering if the US Dollar has room to go on the upside. It is clear that the US Dollar bulls are in control and that they are targeting a move from today’s highs to the start of the year’s highs near 105.35. This is an area of interest for the bulls and could be a potential entry point.
From a technical perspective, the DXY monthly chart shows that there have been plenty of reactions from the recent lows near 101.00 over many months of history. This suggests that the index is likely to use that as a support base, with the next area of liquidity for the greenback as per the DXY chart being near 105.35. The 38.2% Fibonacci retracement is also compelling near 106.00.
On the weekly chart, 106 is seen as a clear target and resistance area. Meanwhile, on the daily chart, the 104.30s were pinned but there is room to go on the upside following the correction into old resistance that is now acting as a support structure.
In conclusion, the US Dollar bulls are targeting a move from today’s highs to the start of the year’s highs near 105.35. If the US Dollar continues to rise, the bulls could target 106.00 thereafter. This is an area of interest for the bulls and could be a potential entry point. The US Dollar is in the control of the bulls and could be set for further gains in the near future.
