Dollar index testing resistance at 104.31

As already noted here, the dollar has advanced further this morning and that has seen the EUR/USD right now drop to 1.0750. That fall has pushed the USD index (USDX) close to the next potential resistance level at 104.31. That is the price point of the 100 day moving average and was covered here in an earlier update. The downside traction in the Euro is the driver for this further rise in the index and as such the move is not a surprise here, as it was advocated on Friday and again earlier this morning. The fact that the dollar is advancing further in Q1 2024 once again underscores what has been said here many times previously, about the cyclicality of the price action from one quarter to the next. The dollar fell back from a peak at the end of Q3 2023, to a trough at the end of Q4. The rebound in Q1 this year does of course have solid grounds from all the latest US data to enforce it too.