The dollar continues to advance for the second day in a row and recorded its highest level in more than a year on Thursday.
The Federal Reserve’s hawkish stance on Wednesday sparked a new rally for the dollar, as signs of an interest rate hike by the end of 2026 offset negative signals for the dollar from growing peace prospects after the US and Iran signed a deal that opens the path toward the end of the war.
Wednesday’s nearly 1% advance represents the biggest daily gain since mid-March, which also registered a close above the 100 psychological barrier, with the day extending above the previous 2026 peak, on track for a second close above the 100 level and to confirm the bullish signal.
Strongly bullish daily studies are contributing to support fundamentals and keeping the dollar in a larger uptrend, eyeing targets at 101.67 (upper limit of up channel and 101 area (100WMA/Fibo 38.2% of larger downtrend 110.00/95.35/round number).
A broken 100 barrier is back to strong support, along with 99.75 (10DMA) which should keep the downside protected.
Accuracy: 100.58; 100.82; 100.94; 101.22
sip: 100.00; 99.75; 99.45; 99.30
