The US Dollar Index (DXY) uptrend remains intact, next targeting the 108 area. Positive momentum is likely to persist until the Fed’s front-loaded policy tightening cycle is nearer conclusion, according to economists at Westpac.

DXY technicals remain bullish

“The USD should remain underpinned by key events during the week ahead, with neither likely to derail the Fed from hiking by 75 bps later this month.”

“The DXY uptrend should remain intact until the Fed’s cycle is mostly complete.”

“Some resistance may be encountered at 108, but technicals alone suggest even higher potential given the break in June above a five-year old contracting range.”