Dollar Index : Dollar Continues to Advance on Risk Aversion and Rising Hopes for Fed Rate Hikes

Technical analysis of Forex market

The dollar maintains firm tone against of basket of its major counterparts and extended gains to the highest since May 2020 on Monday.

High uncertainty over the war in Ukraine and pessimistic tone on soaring energy prices and expectations for further negative impact from the sanctions imposed on Russia, particularly on the EU, keep investors in defensive, with strong migration into safety, dominating in the markets at the beginning of the week.

Upbeat February US jobs data, released on Friday, further brightened the outlook for the US economic growth and added to expectations of Fed’s several rate hikes this year, with the first step expected on central bank’s policy meeting next week.

This additionally supports the greenback, which maintains strong bullish momentum and targets pivotal barriers at 100.00 and 100.34 (psychological / Fibo 76.4% of 103.80/89.15 fall), violation of which would generate fresh bullish signal for further advance, if market conditions remain dollar-favorable.

Res: 99.41; 100.00; 100.34; 101.00.
Sup: 98.93; 98.64; 98.20; 97.82.