- This week, the dollar index moved sideways in a range of 102.00-102.80. We got sustained support from the EMA50 moving average.
Analysis of the dollar index chart
This week, the dollar index moved sideways in a range of 102.00-102.80. We got sustained support from the EMA50 moving average. During the previous Asian session, the dollar moved in the range of 102.20-102.40, remaining low and close to support. Staying in this area for too long would increase pressure on the EMA 50, and the dollar could easily slide and form a new low. Possible lower targets are 102.00 and 101.80 levels.
We need to move to 102.60 level to get a bullish option. After that, it is necessary to hold above that level so that we have the opportunity to visit the 102.80 resistance level this week. As the dollar breaks higher, we will form a new high and build momentum to continue to the upside. Possible higher targets are 103.00 and 103.20 levels.
Low news volume over the next week
Monday is a US holiday, Martin Luther King Jr. Day, and the market will not be open during the US session. On Tuesday, we will wait for the German CPI for December from the EU session. Wednesday is mixed with news from all sessions: first Chinese GDP, then in the EU session UK CPI and Eurozone CPI, and later in the US session we have core December retail sales and retail sales.
On Thursday and Friday, dollar news is dominated by initial jobless claims, the Philadelphia Fed Manufacturing Index and existing home sales for December. It could be interesting because the dollar is in a very important area for future movement.
