Dollar maintains a positive tone, with weekly close in focus for next directional cue

The dollar index continues to trade with a broadly firm tone and is on track for a second consecutive weekly gain, having broken through several key technical barriers this week.

However, the daily chart suggests that bullish momentum may be fading. While the index breached the pivotal Fibonacci level at 98.20 (38.2% retracement of the 101.80–95.97 decline), further upside attempts have been consistently capped by the descending 55-day moving average (98.56).

Daily technical signals remain mixed—positive momentum is still strong, and a bullish Tenkan/Kijun-sen crossover has formed. However, the advance is constrained by the falling daily Ichimoku cloud, limiting follow-through.

Attention now turns to today’s close. A weekly close above the 98.20 Fibonacci level would confirm a bullish breakout and maintain upside potential for another push through the 55DMA, targeting the next key resistance at 98.84/98.88 (50% retracement and base of the daily cloud).

On the flip side, a close back below 98.20 would raise the risk of a bull trap and shift the near-term bias back to the downside.

Res: 98.28; 98.56; 98.88; 99.35
Sup: 98.03; 97.66; 97.28; 96.81