US Dollar Extends Rally to Pivotal Resistance Near 8-Week Highs

The US dollar has extended its rally nearly 2% off the monthly low, testing pivotal resistance near 8-week highs.

According to technical analysis, the Dollar Index (DXY) is currently testing a key pivot zone at the August 2020 high and the 2024 low close at 100.26/35.

A breakout of this zone would keep the focus on a late-month high, but the rally needs to clear it on a close basis to maintain the immediate advance viable in the days ahead.

Initial support for the DXY rests with the channel line off the monthly low and is backed by 99.80/86, while initial resistance is eyed at the 61.8% retracement / September high at 100.56.