• The US Dollar Index climbs to retest Thursday’s high of 100.76.
  • Firmer yields, inflation and Ukrainian risks keep the dollar as a safe haven.
  • DXY has more room for improvement, seeks to regain 101.00

The US Dollar Index (DXY) holds its latest advance well above the 100.50 barrier, as bulls hold their sights on the previous week’s high at 100.76.

Buyer interest around the dollar gauge remains unchanged amid uncertainty surrounding the Ukraine crisis and China’s covid lockdowns, which are disrupting supply chains and driving up inflation via soaring commodity prices. raw materials.

This, in turn, signals the risks of a global recession, directing risk flows to the safe-haven dollar. Additionally, the rally in US Treasury yields on the outlook and hawkish comments from the Fed add to the dollar’s rise.

Technically, the index has more room for improvement and could briefly rally back to 101.00 after price gave an upside break from the rectangular pattern on April 5th.

The bullish confirmation has triggered a new uptrend in the DXY, with the setup target now seen at 101.08. Before that, the bulls need to clear Thursday’s high.

The 14-day Relative Strength Index (RSI) is looking north well above the middle line, supporting the bullish case.

On the other hand, the 100.50 level will be the initial demand zone, below which sellers will accelerate control towards the April 12 highs at 100.33.

Dollar bears would then look to test the psychological 100 mark.

US Dollar Index: Daily Chart

US Dollar Index: Additional Levels to Watch