The dollar hits new multi-month high in extension of post-US CPI rally

The dollar remains firm against the basket of major world currencies and extends advance to new 16-month high on Thursday, following strong rally on Wednesday, sparked by higher than expected rise in consumer prices.
The dollar index surged nearly 1% ( the biggest one-day gains in 2021) after data showed US inflation grew at the fastest annual pace since 1990 last month, boosting expectations that the Fed could respond by raising interest rates earlier than expected and before other major central banks.
The greenback’s upward momentum was boosted by new hawkish view of Fed policy expectations, as the US currency already benefited from the recent dovish steer from other G10 central banks.
Fresh bullish acceleration broke above pivotal barriers at 94.68/74 (200WMA / Fibo 38.2% of larger 103.80/89.15 downtrend) with weekly close above these levels to confirm strong bullish signal and open way for continuation of recovery leg from 89.50 (May 25 higher low).
The price action is currently riding on the third wave of the five-wave cycle from 89.15 (2021 low) and eyeing target at 95.45 (Fibo 138.2% expansion).
Bullish daily and weekly studies support the action, with dips expected to offer better buying opportunities.

Res: 95.08; 95.45; 95.68; 96.47
Sup: 94.82; 94.55; 94.22; 93.98