The dollar index was significantly higher on Thursday as Russian launches a military attack against Ukraine and investors flee to safety.
The greenback’s fate is pinned to the biggest components of the index, which are in defensive, with expectations for further fall that would continue to lift the US currency.
The index was up almost one percent on Thursday morning and hit the highest in three weeks, eyeing key barrier at 97.42 (2022 peak, posted on Jan 28).
Break higher (under the current conditions is seen very likely) would signal continuation of an uptrend from 89.15 (Jan 6 2021 low) and unmask pivotal Fibo resistance at 98.20 (61.8% of 103.80/89.15) fall, violation of which would expose targets at 100.00/100.35 (psychological / Fibo 76.4%).
Bullish technical studies on all larger timeframes add to dollar’s positive outlook, driven by negative geopolitical situation.
Res: 97.21; 97.42; 97.78; 98.20.
Sup: 96.70; 96.41; 96.12; 96.00.
