Dollar accelerates gains after upbeat US consumer spending data boost rate outlook

The US dollar index accelerated higher on Friday, following stronger than expected US inflation and consumer spending data.
Consumer spending surged in January and inflation ticked higher (PCE report) adding to growing expectations that the Fed may extend its policy tightening phase beyond projected levels.
Elevated inflation and tight labor market, along with resilient economy, which is likely going to skip recession, make the solid ground for the US central bank to continue raising interest rates until curbing inflation, without serious fears that such action would harm economic growth.
The greenback continues to benefit from hawkish tones from Fed, continuing to ride on the wave of expectations for extended period of rate hikes.
The dollar rise to the highest since Jan 6 against the basket of its major world peers, on track for the biggest daily advance since Feb 3 and for the fifth consecutive weekly gain.
Fresh acceleration (around 0.8% gain for the day) approached pivotal barrier at 105.39 (2023 high of Jan 6) and also attempting to emerge above rising weekly cloud top.
Break of these barriers is expected to generate fresh bullish signal for extension towards targets at 106.06/106.31 ( daily cloud top / 200DMA).
Bullish daily studies underpin the action, though overbought conditions warn that bulls may lose traction in coming sessions and enter consolidation / shallow correction before fresh rally.

Res: 105.39; 105.53; 106.06; 106.31
Sup: 104.59; 104.28; 103.99; 103.58