The USD Index remains firmly underpinned by supportive technical and fundamental drivers.

The US dollar maintained a firm footing and surged toward a fresh 2026 high of 102.30 on Monday, as the escalating conflict in the Middle East continued to boost safe-haven demand.

Investor focus is also turning to Wednesday’s US inflation report, with expectations for a further rise in September prices reinforcing the view that the Federal Reserve could resume rate hikes from December. Markets broadly expect policymakers to leave interest rates unchanged at the October 28 FOMC meeting.

Bullish momentum remains strong, with the Dollar Index heading for a fifth consecutive weekly gain. A decisive break above the recent peak at 102.30 would pave the way for a test of the key resistance at 102.67, representing the 50% retracement of the 110.00/95.35 decline.

Daily technical indicators remain firmly bullish and continue to align with supportive fundamentals. However, a period of consolidation cannot be ruled out, as the RSI remains in overbought territory while the 14-day momentum indicator is showing bearish divergence against rising prices.

The broader bullish outlook is expected to stay intact while the index remains above its rising 10-day moving average at 101.73. Any corrective pullbacks should ideally be contained above Fibonacci support at 101.41, the 23.6% retracement of the 98.55/102.30 rally, where fresh buying interest could emerge for another leg higher.

Res: 102.30; 102.67; 103.00; 103.45
Sup: 101.94; 101.73; 101.41; 101.00