The dollar index keeps firm tone and rises further on Thursday after surging over 1% on Wednesday (the biggest one-day gains since 3 Feb 2023), lifted by hotter than expected US inflation data, which dropped bets for the start of Fed’s policy easing cycle in June.
Fresh acceleration higher has fully reversed 104.83/103.61 corrective leg and left the higher base at 103.65 zone (reinforced by 200DMA and top of daily Ichimoku cloud) and signaled bullish continuation.
The dollar broke above 105 mark and hit new five-month high, eyeing next target at 105.44 (Fibo 76.4% of 107.03/100.29 downtrend) with weekly close above former tops at 104.85/83, to confirm fresh bullish signal.
Today’s key economic events -ECB’s policy decision and US PPI / weekly jobless claims, will be in focus for fresh signals.
Res: 105.29; 105.44; 105.75; 106.04.
Sup: 104.83; 104.35; 104.00; 103.61.
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