US Dollar Index Price Forecast: DXY bulls await trading range breakout above 100.00
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, is seen building on the previous day's sold bounce from the post-CPI swing low and prolonging its weekly uptrend for the fourth straight day.
The US Dollar Index (DXY) is currently building on the previous day's bounce from the post-CPI swing low and is extending its weekly uptrend for the fourth consecutive day. Traders await a sustained move beyond the 100.00 psychological mark before positioning for further gains. The US Consumer Price Index (CPI) report released on Wednesday was in line with market expectations, providing more room for the Federal Reserve (Fed) to hold interest rates steady.
However, traders remain concerned about inflation risks due to volatile oil prices, and the US-Iran standoff adds geopolitical risk to the equation, supporting the safe-haven US Dollar. Technical indicators suggest that the DXY could climb to the 38.2% Fibonacci retracement at 100.26, en route to the 50.0% retracement at 100.51 and the denser barrier around the 61.8% level at 100.77.
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