The dollar remains in a sustained long-term bullish cycle and looks set for even bigger gains in the days and weeks ahead.
currency hit a fresh two-decade peak versus major peers on Tuesday, hoisted by safety bids and expectations of further aggressive rate hikes by the Federal Reserve, while the euro was pinned close to a 20-year low near parity to the greenback. nL4N2YT0VK
The USD index, which tracks the dollar versus a basket of six currencies, has broken above the 107.31 high posted in December 2002.
Fourteen-week momentum remains positive, reinforcing the overall bullish market structure.
Scope is growing for a retest of the October 2002 108.74 high initially.
It could overshoot to the September 2002 109.67 peak. nL1N2YS0HE
Dollar's fate is especially pinned to the biggest component of the index, the euro.
EUR/USD is trading at levels not seen since December 2002 and is at risk of a deeper dive below parity, which in turn would help the USD index climb much higher.
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