US Dollar Index Outlook: Dollar is Set for Further Advance

Technical analysis of Forex market

Bulls are consolidating under new two-decade high but remain in play and position for further advance.

The dollar is supported by strong Fed rate hikes and hawkish stance that signals further action, as well as safe-haven demand on economic and geopolitical uncertainty, while Euro remains fragile, and yen is set for further weakness that adds to positive signals for the greenback.

Technical studies are positive and support the action, as rising daily cloud and strong bullish momentum underpin.

The dollar may hold in extended consolidation before bulls regain traction for renewed attack at 105.54 peak, with sustained break to signal bullish continuation and expose Fibo projections at 107.13 and 109.20 (123.6% and 138.2% respectively).

Dips should stay above rising 10DMA (103.89) to keep bulls intact.

Res: 104.54; 104.87; 105.26; 105.54.
Sup: 103.89; 103.62; 103.16; 102.92.