The dollar consolidates after Thursday’s 0.35% jump but keeps firm tone and remains on track for weekly gain of over 0.5%.
Bulls regained traction after two-legged pullback from new 2026 peak (101.55) registered a false break below trendline support (bull trendline drawn off 97.40 zone higher base), with subsequent bounce retracing the largest part of 101.55/100.12 pullback and shifting near term focus higher again.
Predominantly bullish daily studies underpin the action, primarily driven by supportive fundamentals.
The latest escalation in the Middle East lifted oil prices to the highest in over two months, sparking concerns of growing inflationary pressure that would prompt Fed to take more hawkish stance on monetary policy and lift the greenback further.
Consolidation should hold above broken Fibo level at 100.94 (38.2% of 110.00/95.35 descend) and trendline support (100.83) to keep bulls intact for retest of year-to-date high and possible extension towards 102.67/77 (50% retracement / weekly Ichimoku cloud top) in persisting favorable fundamentals.
Res: 101.37; 101.55; 102.00; 102.67
Sup: 100.94; 100.83; 100.42; 100.00
