USD index poised for extended rally as technical momentum builds

The US Dollar Index (DXY) shows strong technical signals for continued appreciation, with analysts projecting additional upside potential across major pairs. EUR/USD faces downward pressure near 1.0920, while GBP/USD struggles below 1.2350 resistance. USD/JPY maintains bullish momentum above 157.50, supported by widening interest rate differentials between the Fed and BoJ. AUD/USD remains vulnerable near 0.6200 as commodity weakness and China concerns weigh on the Australian currency. The dollar's strength stems from resilient US economic data and expectations that the Federal Reserve will maintain higher rates for longer than other major central banks. Technical analysis reveals the DXY testing resistance at 109.50, with a break potentially triggering moves toward 110.00. Key support levels across major pairs suggest further dollar gains, with traders positioning for continued USD outperformance in the coming sessions.