The dollar index remains constructive and extends higher in European trading on Friday, following 0.7% advance on Thursday.
The greenback benefited from renewed safe-haven demand, sparked by growing concerns over US debt ceiling case and further worries about banking sector crisis.
The price action is heading towards the top of near-term range (100.45/102.17), with sustained break higher to expose next targets at 102.52/68 (Fibo 38.2% of 105.85/100.45 fall / base of falling and thickening daily cloud) and add to initial reversal signal, if dollar-favorable conditions persist.
The dollar index is also on track for the biggest weekly gain since mid-February, which adds to positive near-term outlook, along with improving daily techs on rising bullish momentum, which keeps prospect for break above current congestion,
On the other hand, larger picture shows that the greenback remains in a downtrend from 114.72 (Sep 2022 multi-year peak), sparked and still mainly driven by cooling US inflation, while the latest data generated initial signal of slowing labor market and Fed signaled a pause after the last 25 basis points rate hike, which would add pressure on greenback and weigh on current recovery.
Res: 102.17; 102.52; 102.68; 103.15.
Sup: 101.73; 101.52; 100.66; 100.45.
