DXY: Can The U.S. Dollar Index Close The Week Above Former Breakout Resistance?

The U.S. Dollar Index is on the cusp of closing the trading week out at fresh yearly trading highs, after performing a major technical breakout earlier today. The U.S. Dollar Index is trading around the 96.00 handle heading into the U.S. trading, with few pullbacks in price so far.

U.S. Dollar bulls will likely breath a sigh-of-relief if U.S. CPI data can meet or indeed beat expectations of a 0.2% monthly increase later today. Year-on-year CPI is also forecasted at 3.0%, which is only slightly above the 2.9% reading during the same period last year.

Aside from a strong weekly price close above the 95.65 level, technical traders may also be seeking two-consecutive daily price closes above the former yearly-low, to get bullish confirmation that the breakout move is genuine.

It will be interesting to watch to see if the U.S. Dollar does pullback to key support, or continues to head higher towards the July 2017 trading-high, around the 96.50 mark.

Key support below the 95.65 level is found at the former weekly-high, at 95.52, and trendline support, at 95.30. Key resistance is found at the daily-high, at 95.17, and the previously mentioned July 2017 trading-high.

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Can th US dollar index close the week above key resistance

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