The US Dollar Index is poised to close out the month of May 2.8% higher, reclaiming all the prior month’s downside and a large portion of the 2.3% drop in March. Needless to say, it’s been a positive month for the greenback, which is likely to continue into June, according to chart studies.

Leaving support at 99.67 unchallenged on the monthly scale, price action has pencilled in a floor around the 102.00 neighbourhood. Further upside on this timeframe has scope to rally as far north as channel resistance taken from the high 103.65.

Meanwhile, on the daily scale, aside from the possibility of resistance forming around 105.10 (15 March high) and the Relative Strength Index (RSI) nearing overbought territory (70.00), the river north appears to be ripple free until resistance at 105.36, which happens to share space with the 200-day simple moving average (fluctuating around 105.63) and another layer of resistance at 105.82.

Charts: TradingView

DISCLAIMER:

The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.