US Dollar Price Analysis: Bulls target a breach into clear skies to 105.35/ 106.00

• The US Dollar is resurging and has been taken back into the control of the bulls.
• US Dollar bulls target 105.35 and 106.00 thereafter.

The US Dollar is trading in confluence to the persistent inflationary theme since data over the last several days has turned the screw and flipped the script with regard to the timings of a Federal Reserve pivot.  

Higher Treasury yields and a projected 5.3% terminal Fed funds rate have seen a resurgence in the US Dollar index, DXY. This index measures the greenback vs. a basket of currencies as the following technical analysis will illustrate that is leaning with a bullish bias:

Taking into consideration the fundamentals as outlined above, has the US Dollar got room to go on the upside until any major-looking resistance is seen?

DXY monthly chart

Looking at the above chart and the monthly structures, we can see that there have been plenty of reactions from the recent lows near 101.00 over many months of history in the DXY index. If the index is going to continue to use that as a support base, then where is the next area of liquidity for the greenback as per the DXY chart going to be?

Given the momentum behind the bid as per the monthly chart's recent candle's engulfment of the prior month's body, it is evident that the bulls are in control and by some margin with 105.35 eyed:

The 38.2% Fibonacci retracement is also compelling near 106.00.

Down on the weekly chart, 106 is seen as a clear target and resistance area:

From a daily perspective, the 104.30s were pinned but there is room to go on the upside following the correction into old resistance that is now acting as a support structure.

In conclusion, while being on the front side of the dynamic support line, the bulls can target at least the space between today's highs and all the way to the start of the year's highs near 105.35: