The dollar index surged to its highest level in nine weeks as investors priced in increased odds of additional Federal Reserve rate hikes and reacted to mounting geopolitical risks

The U.S. dollar remains firmly bid on Monday, extending Friday’s 0.65% advance and climbing to a fresh nine-week high. The index briefly pushed above the psychological 100 mark for the first time since early April, underscoring the strength of the current bullish momentum.

The greenback continues to draw support from stronger-than-expected U.S. May nonfarm payrolls data, which reinforced expectations that the Federal Reserve could maintain a hawkish stance. At the same time, ongoing uncertainty surrounding the conflict in the Middle East is adding to inflation concerns while boosting demand for the dollar’s safe-haven status.

From a technical perspective, the daily chart remains constructive and aligned with supportive fundamentals. A sustained break above the 100 level would strengthen the bullish outlook and expose the next resistance targets at 100.32 and 100.48, representing the November 2025 and March 2026 highs, respectively. A move beyond these barriers could pave the way toward 100.94, the 38.2% Fibonacci retracement of the decline from 110.00 in January 2025 to 95.35 in January 2026.

However, some caution is warranted. The stochastic oscillator remains in overbought territory, the RSI is flattening just below overbought levels, and the 14-day momentum indicator has turned lower, suggesting that bullish momentum may be losing steam. This raises the risk of a period of consolidation or a modest corrective pullback.

On the downside, the former range ceiling around 99.50 and the breached 61.8% Fibonacci retracement at 99.30 should provide solid support. As long as these levels hold, the broader bullish structure is expected to remain intact.

Res: 100.32; 100.48; 100.94; 101.22
Sup: 99.75; 99.50; 99.30; 99.00