Dollar index gains over 1% for the week on hawkish shift in Fed rate outlook / risk aversion

The dollar advances for the fourth consecutive day, riding on the wave of fresh risk aversion and being boosted by shift in Fed rate outlook, as rising inflation revives speculations of potential rate hike this year.

The dollar index hit one month high on Friday, after cracking key barriers at $99.00 zone (former multiple tops / 50% retracement of $100.48/$97.44 descend), with sustained break here to generate strong bullish signal (confirmation of a higher base at $97.50 zone and break above the top of five-week range).

Daily studies in full bullish configuration (strengthening positive momentum / daily Tenkan / Kijun-sen bull-cross) support the action, while large bullish weekly candle (dollar was up around 1.2% for the week) completes reversal pattern on weekly chart.

Bulls eye next strong technical barriers at $99.32/38 (Fibo 61.8% / daily cloud top), but may pause for consolidation / limited correction before attacking, due to overbought conditions and end of week partial profit-taking.

Broken pivotal barriers at $99.00 reverted to solid supports, along with ascending 55DMA ($98.80), which should ideally contain dips and keep bullish structure intact.

Res: 99.38; 99.75; 100.00; 100.26
Sup: 99.00; 98.80; 98.60; 98.30