US Dollar Index (DXY) extends gains for 5 weeks, eyeing the 100 level

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  • DXY is up 0.59% on the day as USD bulls target the 100 level as the American session wraps up.
  • The United States imposes a new tranche of sanctions on Russia.
  • US Dollar Index (DXY) Technical Outlook: Bias to the upside, though testing the parallel Pitchfork line just above the 99.00 mark.

The US dollar index (DXY), a gauge of the dollar’s value against a basket of six rival currencies, advanced 0.60% during the American session, reflecting a risk-off mood in the market as investors sought safe-haven peers , with the US dollar being the safest. At time of writing, the DXY is at 99,119.

Market sentiment fluctuated throughout the day. In the middle of the European session, the news that Russia-Ukraine talks according to Russian President Vladimir Puttin said that there were “certain positive changes” in the negotiations with Ukraine. However, by the end of the day, Ukraine’s Foreign Minister Dmytro Kubela said on Friday that “there was no progress in talks with Russia on Thursday,” BBG reported.

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Meanwhile, sanctions on Russia continue to increase. US President Joe Biden said Friday that the United States will revoke Russia’s “permanent normal trade relations” status to punish Moscow for its invasion of Ukraine. At the same time, the US will ban imports from Russia, which could disrupt more than $1 billion in export revenue for Russia, according to the White House.

Meanwhile, US Treasury yields are mixed, led by the short-term of the yield curve, with 2-year and 5-year Treasury yields rising two-and-a-half and one-and-a-half points. basic, respectively up to 1,746% and 1,956%. The 10-year Treasury bond yield rises one basis point to 2%.

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US Dollar Index (DXY) Price Forecast: Technical Outlook

DXY is biased to the upside, steadily advancing inside the ascending Pitchfork channel. In fact at press time it is pushing the midline between the upper and center parallel lines, once broken it would expose the yearly high at 99.418, followed by 100 and then the upper trend line of the Pitchfork channel around the area 100,500.

Additional technical levels

Source: Fx Street

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