DXY Bulls Await Break Above 100.00 as US Dollar Index Hits Two-Week High

The US Dollar Index (DXY) is continuing its weekly uptrend, reaching a two-week high on Thursday. The DXY tracks the value of the US dollar against a basket of major currencies.

The recent Consumer Price Index (CPI) report came in line with market expectations, giving the Federal Reserve room to hold interest rates steady. However, traders remain concerned about inflation risks stemming from volatile oil prices and are pricing in a higher chance of at least one rate hike by year-end.

From a technical perspective, the DXY's move beyond key moving averages and Fibonacci retracement levels is seen as a bullish signal. Momentum indicators also support further near-term appreciation, with the Relative Strength Index (RSI) at 58.50 and Moving Average Convergence Divergence (MACD) remaining slightly positive.

Bulls are waiting for a sustained break above the top boundary of a short-term trading range around 100.00 before positioning for further gains. If this happens, the DXY could climb to key levels around 100.26, 100.51, and 101.14.