The dollar index remains steady above the 104.00 level

Dollar index chart analysis

During the Asian trading session, the dollar index was successfully maintained above the 104.00 level. At the EU session’s opening, we jumped to 104.20 levels. We stop at that level and pull back to 104.00 again, looking for support for a new bullish impulse and breaking above the 104.20 level. Last week, the high of the dollar index was at the 104.26 level; if today we were successful above 104.20, we will definitely see a jump above last week’s high.

Potential higher targets are 104.30 and 104.40 levels. We need a pullback below the support at the 104.00 level for a bearish option. This would open the door for the formation of a new daily low. The first subsequent support is the 103.80 level, along with the EMA50 moving average. A break below leads to the formation of a new low, and thus, we get confirmation of the bearish option. Potential lower targets are 103.70 and 103.60 levels.

This week, the focus is on central bank decisions

Tomorrow, before the central banks, we expect data on US monthly and annual inflation, as well as data on core inflation. On Wednesday, the most important news is the FED’s decision on the future interest rate. Expectations are that the interest rate will remain at the same level. In addition to the FED, we have British and New Zealand GDP on Wednesday.

On Thursday, the focus is on banks from European soil. At the start, first the SNB bank, then the Bank of England and the ECB. All three banks will present their projections of their future interest rates. Economists estimate that interest rates will remain the same as before and that there should not be any surprises.

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