Dollar Index Soars on Hawkish Sentiment

The US Dollar Index (DXY) has been on the rise after a significant recovery from its low of 98.56, currently trading around 99.52 on the 2-hour chart.

As noted by technical analysis, the price has surpassed the 38.2% Fibonacci level at 99.49 and is now testing the 23.6% retracement at 99.58.

Although the short-term structure remains supported by a rising trendline and fair-value gap at 99.24-99.34, DXY faces significant resistance in the range of 99.58-99.73 where recent highs are located.

A break above 99.58 would strengthen the bullish case, potentially leading to a rise towards 99.73-100.03, while a failure to do so could result in a sell-off back towards the 99.34 support zone.