DXY extends weekly uptrend for a fourth day as traders await a sustained move past the 100.00 level amid inflation and geopolitical risks.
The US Dollar Index (DXY) climbed to a two-week high in early European trading Thursday, extending its weekly uptrend for a fourth consecutive session. Bulls remain cautious, awaiting a decisive break above the 100.00 psychological mark before pushing for further gains.
The index found support after Wednesday’s US Consumer Price Index (CPI) report matched expectations, easing pressure on the Federal Reserve to adjust interest rates. However, concerns over inflation risks from volatile oil prices and geopolitical tensions, including the US-Iran standoff, continue to underpin demand for the safe-haven USD.
Technical indicators favor further upside, with the DXY breaking above its 50-period Simple Moving Average and the 23.6% Fibonacci retracement level. The Relative Strength Index (RSI) at 58.50 signals bullish momentum without overbought conditions, while the MACD remains slightly positive.