Dollar index hits new 2026 high

The dollar index continues to benefit from several key factors – growing expectations for more hawkish Fed, as rising oil prices fuel inflation, strong risk aversion environment that boosts its safe-haven appeal and sharp selloff in bond market that pushed the yield on benchmark 10-year Treasury bond to the highest since 2022.

Thursday’s advance cracked key barriers at 101.48/55 July 28 / Jun 24 peaks, also 2026 highs), generating an initial signal of continuation of larger uptrend from late January lows (close above these levels is required to confirm signal).

The dollar moves in a steady uptrend for the third straight week and ended September with gains of nearly 2% that fully reversed two-month pullback (101.48/98.44).

Bullish daily studies continue to underpin, although overbought conditions (and Stochastic bearish divergence) warn that bulls may face difficulties to clear strong 101.48/55 resistance zone.
Broken Fibo 38.2% level of 110.00/95.35 downtrend (100.95) should ideally hold potential dips and keep larger bulls intact.

Firm break of 101.48/55 triggers to expose targets at 101.80 (12 May 2025 high) and 102.67 (50% retracement of 110.00/95.35).

Res: 101.80; 102.00; 102.67; 103.00
Sup: 101.18; 100.95; 100.75; 100.48