Dollar Rally Tests Key Pivot Zone Amid Light Economic Calendar

The US Dollar Index is testing a key pivot zone at 100.26-100.35 as it extends nearly 2% off its monthly low, according to FOREX.com's technical analysis.

Initial support for the dollar rests with the channel line off the monthly low and is backed by 99.80-99.86, a region defined by the 38.2% retracement of the June decline and the September opening range high.

Broader bullish invalidation for the dollar is now raised to the 38.2% retracement of its yearly range and the January high at 99.41-99.49, while initial resistance is eyed at the 61.8% retracement/September high at 100.56.

The technical outlook remains tilted towards the topside for the dollar as long as it holds above 99.80, with a close above 100.56 needed to fuel the next leg higher in the index.