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Dollar consolidates after 0.35% jump, targets 2026 high
The dollar is still set for a weekly gain of more than 0.5% as bullish studies continue, helped by Middle East-driven higher oil prices raising inflation concerns for the Fed.
The US dollar is consolidating after a 0.35% jump on Thursday, while maintaining a firm tone and staying on track for a weekly gain of more than 0.5%, according to Action Forex.
Bulls regained traction after a two-step pullback from a new 2026 peak at 101.55, after a false break below trendline support near a bull trendline drawn off the 97.40 area, with the rebound retracing much of the 101.55 to 100.12 pullback.
Action Forex points to an escalation in the Middle East that has lifted oil prices to their highest level in more than two months, a move that has renewed concerns about inflation pressures and could lead the Fed to adopt a more hawkish stance, supporting further dollar strength.
The analysis says consolidation should hold above key levels including the broken Fibo at 100.94 and trendline support at 100.83 to keep the bullish outlook intact, setting up a potential retest of the year-to-date high and an extension toward 102.67 to 77.