The dollar index jumped 0.5% on Monday, primarily benefiting from safe-haven buying following fresh turbulence in AI sector, but also by growing prospects of Fed rate hike on Thursday, after the data released last week showed that inflation in the US picked up last month, while the labor sector strengthened.
Strong acceleration higher broke through MA’s (200/20/10), as well as four Fibonacci retracement levels of 99.82/98.55 bear-leg, generating strong signal of reversal (along with formation of long bullish daily candle after four consecutive Dojis.
Daily close above broken 50% (99.18) is minimum requirement to keep fresh bulls intact for fresh push towards targets at 99.52 (Fibo 76.4%), 99.63 (100DMA) and key near-term barrier at 99.82 (Sep 2 peak).
Converged 10/20 DMAs (99.04) should contain potential deeper dips to provide better levels to re-enter bullish market.
Res: 99.52; 99.63; 99.82; 100.00
Sup: 99.18; 99.04; 98.95; 98.79
