US Dollar Index Price Forecast: Rally likely extend towards 104.00
The US Dollar (USD) outperforms its major currency peers, except the Japanese Yen (JPY), on Thursday, amid fears that the Federal Reserve (Fed) could turn aggressive on its current monetary tightening cycle to contain elevated inflationary pressures.
WTI, or West Texas Intermediate, is the benchmark price for US Crude Oil and currently stands near $86.80. Despite buying pressure, the price lacks follow-through and remains below the previous day's high. The ongoing Middle East crisis, including strikes by US forces on Iran's Qeshm Island and Iranian attacks on ships near Didamar, contributes to geopolitical risk.
Iranian officials claim that the Strait of Hormuz is closed, adding to market tension. The lack of a supply glut and rising US crude inventories further dampen bullish sentiment. Technical analysis shows a bearish trend as WTI is trading below the 100-day SMA at $86.81, while momentum indicators indicate a soft bias. The 50% Fibonacci retracement level at $85.61 provides support, with deeper support at $81.26 and $75.06.
Resistance lies at the 100-day SMA and the 38.2% retracement at $89.96. A break above these levels could ease the bearish bias, potentially pushing prices toward the 23.6% retracement at $95.34. Factors such as global growth, political instability, OPEC decisions, US Dollar value, and Oil inventories all influence WTI price. The EIA's weekly inventory report, published every Tuesday, impacts price, with lower inventories typically signaling increased demand and higher prices.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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