Dollar Strength Returns as DXY Approaches Critical Zone

The US dollar jumped after the FOMC minutes showed a hawkish tone. Officials warned that rates could rise again if inflation stays high.

From a technical perspective, the US Dollar Index is showing improving upside momentum after a bullish false break below 96 on the weekly chart. However, it is approaching a critical resistance cluster around 97.77 to 98.00, which includes prior swing levels and the 20- and 50-day moving averages. A break above this zone could trigger deeper pullbacks in major FX pairs.

It may retrace downward from the resistance and then continue upward.

DXY Daily Chart