US Dollar Index climbs to five-week high as hawkish Fed bets gather pace
On the daily chart, the Dollar Index is extending its recovery above its main moving averages and reinforcing a constructive near-term bias. The 50-day Simple Moving Average (SMA) at 99.00 now underpins the advance, with the 100-day SMA at 98.48 offering a deeper layer of trend support. Momentum conditions back the topside tone, as the Relative Strength Index (14) at 58.67 pushes further into positive territory and the Moving Average Convergence Divergence (MACD) turns more firmly positive above the zero line. On the topside, initial resistance is located at 100.00, with a break there exposing the next hurdle at 100.50. On the downside, immediate support is provided by the 50-day SMA at 99.00, ahead of the 100-day SMA at 98.48; a deeper pullback would look to the horizontal floor near 97.75 as the next notable demand area. Fed FAQs Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Feds 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger
