The dollar index continues to climb higher and is currently hovering near 2002 highs as investors turned to safe haven assets amid risks of military escalation in Ukraine and further rate hikes from FOMC later in the day.
From a technical point of view, the index is testing a major resistance zone around 110.65 which is marked with previous price reactions. Should a break higher occur, upward move may accelerate towards next support at 111.45, where September 2001 lows are located. However, if there is a change in market sentiment, index may move towards support at 107.00, which is marked with lower limit of the 1:1 structure and upward trendline or even 105.65 which coincides with 23.6% Fibonacci retracement of the upward wave started in January 2021.
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USDIDX, D1 interval. Source: xStation5
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