Dollar Rallies Near 2%, Sterling Breaks Trend Support, Bitcoin Hits New Highs

The US Dollar Index (DXY) is testing a key pivot zone at 100.26/35, which is also the August 2020 high and the 2024 low close.

This breakout of the September opening range last week keeps the focus on a late-month high, but the rally needs to clear this key zone on a close basis to keep the immediate advance viable in the days ahead.

In terms of resistance, initial support rests with the channel line off the monthly low and is backed by 99.80/86, which is defined by the 38.2% retracement of the June decline and the September opening range high.

Broadly speaking, bullish invalidation is now raised to the 38.2% retracement of the yearly range and the January high at 99.41/49.