Dollar rallies on growing prospects for Fed rate hike

The dollar extends advance into the second consecutive day and hit the highest in more than a year on Thursday.

Fed’s hawkish hold on Wednesday sparked fresh dollar’s rally, as signals of rate hike by the end of 2026 offsets dollar negative signals from growing peace prospects after US and Iran signed an agreement that opens way towards the end of war.

Wednesday’s nearly 1% advance marks the biggest daily gain since mid-March, which has also registered close above psychological 100 barrier, with today’s extension above former 2026 peak, on track for the second close above 100 level and to confirm bullish signal.

Firmly bullish daily studies contribute to supportive fundamentals and keep the dollar in larger uptrend, eyeing targets at 101.67 (bull-channel upper boundary and 101 zone (100WMA / Fibo 38.2% of larger 110.00/95.35 downtrend / round figure).

Broken 100 barrier reverts to solid support, along with 99.75 (10DMA) which should keep the downside protected.

Res: 100.58; 100.82; 100.94; 101.22
Sup: 100.00; 99.75; 99.45; 99.30