Upbeat economic data underpinned the US Dollar Index in recent trading and firmly shifted attention to a key resistance level on the daily timeframe at 103.85. Given the latest USD strength, a break of the aforementioned level will not surprise.

Should a breakout higher materialise, you will find that short-term traders are likely to drill down to the lower timeframes around this area to secure breakout buying opportunities. Conservative traders usually pursue a retest of the breached level before committing.

Upside resistance on the daily scale calls for attention at 105.13, closely shadowed by another layer of resistance from 105.82, which shares chart space with the 200-day simple moving average at 105.79.

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