USD Index Nears Key 2026 High as Bulls Stay in Control
The US dollar index is consolidating following Thursday’s 0.35% advance, yet the broader tone remains constructive and keeps the benchmark on course for a weekly gain exceeding 0.5%.
Bullish momentum has regained strength after a two-phase correction from the fresh 2026 high at 101.55 produced a false break beneath key trendline support, drawn from the 97.40 higher-base area. The subsequent rebound has retraced most of the decline from 101.55 to 100.12, shifting the near-term bias back to the upside.
Daily technical indicators continue to favor the bulls, supported by a generally positive fundamental backdrop.
Fresh escalation in the Middle East has driven oil prices to their highest levels in more than two months, reigniting concerns over inflationary pressures. The surge in energy costs could encourage the Federal Reserve to maintain a more hawkish policy stance, providing additional support for the greenback.
The current consolidation phase is expected to remain above the broken Fibonacci barrier at 100.94 (38.2% retracement of the 110.00–95.35 decline) and trendline support at 100.83. Holding above these levels would preserve the bullish outlook for another test of the 2026 peak, with scope for an extension toward the 102.67–102.77 zone, where the 50% retracement level and weekly Ichimoku cloud top converge, provided supportive fundamentals remain in place.
Res: 101.37; 101.55; 102.00; 102.67
Sup: 100.94; 100.83; 100.42; 100.00
