The dollar index fell below 105.0 on Thursday after sliding 1% in the previous session, as investors try to assess softer-than-expected US inflation report that sparked a broad rally in risk assets and set of hawkish remarks from Federal Reserve policymakers emphasizing the central bank’s commitment to keep raising interest rates to tame price pressures. From a technical point of view, the index is testing a major resistance zone around 104.45 which is marked with lower limit of the 1:1 structure, 50 sma (green line), 23.6% Fibonacci retracement of the upward wave started in January 2021 and upward trendline. As long as price sits above the aforementioned level, another upward move may be launched towards recent highs at 109.20. On the other hand, should the break lower occur, the downward move may accelerate towards the next support at 101.60.
USDIDX, D1 interval. Source: xStation5
