The dollar index is stabilizing above 105.00 this week
On Friday, the dollar index fell to 104.52, forming a new low there.Dollar index chart analysis
On Friday, the dollar index fell to 104.52, forming a new low there. This was followed by a rapid bullish consolidation to the 105.00 level, and the market was closed there. On Monday, the dollar was first unstable, retreating to 104.85 levels. We get new support there, and from there, we move back up above the 105.00 level, forming a new low there. That led us to see a bullish consolidation from that level yesterday and recover from the 105.40 level.
During this morning’s Asian trading session, the index continued to strengthen up to 105.65 levels. There, we form a new weekly low, and for now, we stop at that level, retreating to 105.50. Here, we are trying to get support from the EMA200 moving average and form a new bottom from which we could start a further recovery.
The dollar index is in a rush; did you have the strength to continue?
If we succeed in that, the dollar index would have the opportunity to continue on the bullish side. Potential higher targets are 105.80 and 106.00 levels. We need a drop below the EMA200 moving average for a bearish option. By withdrawing to 105.40, we return to the daily open price. This could initiate a new bearish impulse and create a new daily low. Potential lower targets are 105.20 and 105.00 levels.
There is less volume of strong economic news this week. Today in the US session, we highlight Crude Oil Inventories and 10-year Note Auction. Tomorrow, the focus is on the Bank of England and the future interest rate. Economists expect it to remain at the same level as before at 5.25%. US news for tomorrow: Initial Jobless Claims and the 30-year Bond Auction. For Friday, the focus is on GBP GPD, monthly, quarterly and yearly.
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