The dollar index falls below the EMA200 level and 105.70
During the Asian session, the dollar index broke below 106.00 and slid to the 105.50 support level.Dollar index chart analysis
During the Asian session, the dollar index broke below 106.00 and slid to the 105.50 support level. With that, we are also testing last week’s support zone. We pulled back below the EMA200 moving average, which puts additional pressure on the index.
This could influence us to start a further retreat and see the dollar index at a new weekly low. Potential lower targets are 105.40 and 105.30 levels. Thus, we fell to a three-week low and confirmed the previous bearish formation. After that, there is a better chance to continue at the major support at 105.00.
Will the dollar index manage to hold above 105.50?
To get back to the bullish side, we need to move above 105.80 and the EMA200 moving average. Then, we need to move to 106.00 and test the weekly open price there. If we manage to stay up there, we have the opportunity to move to a new daily high and thereby increase optimism for a continuation on the bullish side. Potential higher targets are 106.20 and 106.30 levels.
Today’s important news is the German CPI, which will only be published on the US market. Forecasts are that there could be an increase in inflation. On Tuesday, first, in the Asian session, we have the Chinese manufacturing PMI index; in the EU session, German GDP and Eurozone CPI; and in the US session, Chicago PMI and CB Consumer Confidence data. Wednesday is scheduled for the Fed’s interest rate hike. Expectations are that it will remain at the same level as last time.
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