The dollar keeps firm tone and remains on track to complete the second week of steep rally, acting as a major safe-haven asset in the situation of risk aversion.
Higher oil prices on escalating war in the Middle East threat of fresh rise of inflation that also underpins the greenback, as the Fed is unlikely to cut interest rates, as initially expected, but may opt for holding rates or fresh policy tightening.
Friday’s rally (index was up nearly 0.7% until mid-US session) broke through key barriers in $100 zone (former top at $99.64 / psychological), as well as the upper boundary of bull-channel from $95.35 ($100.23) and cracked 2025 peak at $100.32, after bulls penetrated falling and thick weekly Ichimoku cloud (base lays at $99.28).
Close above these levels to validate fresh signal of reversal and open way for stronger recovery of larger $110.00/$95.35 downtrend, with Fibo 38.2% retracement ($100.94) marking next significant barrier.
Bullish daily studies (10/100DMA and 20/200DMA bull crosses / strong positive momentum) contribute to supportive fundamental components, though overbought conditions should be anticipated.
Broken $100 level reverts to immediate support, with deeper dips to find firm ground at $99.60/30 zone and keep larger bulls in play.
Res: 100.50; 100.94; 101.25; 101.71
Sup: 100.00; 99.60; 99.30; 99.09
