US Dollar Index Price Forecast: A break above 100.00 would confirm a double bottom

The US Dollar Index (DXY) has climbed for two consecutive days on Tuesday, driven by concerns over the US-Iran talks and the Federal Reserve's talk of a potential September rate increase. Trading around 99.85, the DXY is just shy of the key 100.00 level. This week's focus is on the US Consumer Prices Index report, which could clarify the Fed's rate path and signal the short-term direction for US Dollar pairs.

Analysts at OCBC believe that the Federal Reserve's expectations remain optimistic, but a 0.3% month-over-month increase in core CPI, exceeding the 0.2% forecast, would be needed to significantly boost this outlook. The 99.40 area, a low from August 2nd and 7th, serves as immediate support, with 100.45 as a potential target for a more significant correction.