USD INDEX remains well supported by positive technical and fundamental factors

The dollar kept firm tone and jumped towards new 2026 peak (102.30) on Monday, as escalation of conflict in the Middle East continues to fuel safe-haven demand.

Markets also anticipate that US inflation will rise further in September (data due on Wednesday) that supports growing expectations for rate hikes from December onwards (FOMC is widely expected to hold rates in Oct 28 meeting).

Bulls pressure the latest top (as the dollar index enters fifth straight week of uninterrupted advance), break of which to open way for test of strong barrier at 102.67 (50% retracement of 110.00/95.35).

Firmly bullish daily studies contribute to positive fundamental factors that underpin the dollar, however, a pause in current rally cannot be ruled out as RSI is overbought and 14-d momentum diverges from rising price.

Overall bullish structure is expected to remain intact while the price stays above rising 10DMA (101.73) with potential deeper dips not to exceed Fibo support at 101.41 (23.6% of 98.55/102.30 rally) to mark positioning for fresh push higher.

Res: 102.30; 102.67; 103.00; 103.45
Sup: 101.94; 101.73; 101.41; 101.00