Dollar Index: Dollar Accelerates Higher, Eyes Fresh Support from US Job Report

Technical analysis of Forex market

The dollar index resumes a steep ascend after a brief pause on Thursday, boosted by strong safe-haven demand on economic and political uncertainty.

The index hit new highest since Oct 2002 and eyes pivotal Fibo barrier at 109.14 (76.4% of 121.02/70.69, 2001/2008 fall).

Close above this level would generate fresh bullish signal for acceleration through psychological 110 barrier.

The dollar index is on track for the biggest weekly rally since mid-June 2021 that adds to positive signals, although studies on all larger timeframes are overbought and warn of adjustment in the near future.

Traders focus US jobs report which is likely to add to Fed’s argument for more hawkish approach in policy tightening, as unemployment is expected to remain low, pointing to tight conditions in job market, while expected drop in hiring is seen as temporary phenomenon, driven by seasonal factors and so far not so harmful for overall positive picture.

Res: 107.60; 108.74; 109.14; 110.00.
Sup: 106.58; 105.54; 104.56; 103.96.

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