US DOLLOR INDEX

The weekly price chart below shows the U.S. Dollar Index printed a large bullish candlestick last week, after previously rejecting the support level at 12257, which closed relatively close to the high of its range. The price ended the week at its highest weekly close seen in 18 months. These are all strongly bullish signs for the greenback. The dollar was boosted by last week’s Federal Reserve release which suggested 2022 will see higher and faster rate hikes than had been widely expected.

Overall, it seems clear we have a very bullish picture in the USD over the long and medium terms, so it will probably be wise to trade in the direction of long USD over the coming week.