Dollar Faces Pivotal Resistance as Key Economic Data Looms

The US Dollar has recovered from its summer correction, rebounding more than 1% from its August low after declining over 3% from its July high. This recovery was driven by a confluence of technical support at the 50% retracement of the yearly range and the 25% parallel of the 2026 uptrend at 98.68.

The index has reclaimed its yearly moving average, but buyers still need to show follow-through to strengthen the broader recovery case. Pivotal resistance remains overhead, with key weekly resistance at 100.16/42 and subsequent targets at 101.37 and 101.80/98.

This week's economic calendar is dominated by ADP and Non-Farm Payrolls releases, which will reassess the outlook for Fed policy and potentially impact dollar sentiment.