In spite of decades of negative sentiment towards the US currency, the current technical outlook for the currency is one of prolonged consolidation and the outlook for golden cross formations against numerous currencies.

The U.S. Dollar Index (DXY) surged to a 12-month high of 100.81. This major breakout follows a hawkish tilt from the Federal Reserve, with Chairman Kevin Warsh and FOMC officials signaling potential rate hikes later this year to combat inflation.

The US currency is showing strength even against the Swiss Franc, where a series of higher highs and higher lows have been identified. Reasons for this development could be on one hand due to the interest rate differential in favour of the dollar and on the other due to growing scepticism from the Swiss population towards politicians and large corporations, with a desire for a stronger leadership.

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