The dollar index extends steep ascend from Aug 10/11 double-bottom (104.49) to probe through previous top at 109.12 (July 14) and hit new highest since Sep 2002.
The greenback remains well supported by safe-haven flows on concerns about global growth and hawkish Fed, with completion of corrective phase (109.12/104.49) signaling continuation of larger uptrend from 2021 double-bottom at 89.15/90.42.
Weekly studies in full bullish setup and last week’s completion of bullish engulfing pattern (following 2.3% weekly advance, the biggest weekly rally since mid-March 2020) underpin the action, along with last week’s large bullish candle.
On the other side, overbought daily techs suggest bulls may take a breather for consolidation before resuming.
Shallow dips are likely scenario, ideally to be contained at 108 zone, though deeper pullback towards supports at 107.36/00 (broken Fibo 61.8% / daily cloud top) cannot be ruled out, but still expected to offer better buying opportunities.
Break of 109.12 pivot to expose initial targets at 110.00/22 (round-figure / Fibo 123.6% projection) with stronger acceleration to focus 111 zone.
Res: 110.00; 110.22; 110.90; 111.44
Sup: 108.78; 108.03; 107.36; 107.00
