This week, the dollar index began with an upward consolidation and reached 103.69.
Analysis of the dollar index chart
This week, the dollar index began with an upward consolidation and reached 103.69. This rally was formed on Wednesday and after that we see a pullback to the support at the 10315 level. Yesterday we saw a new upward attempt that was stopped at the 103.60 level. During the previous Asian trading session, the dollar moved in the range of 103.30-103.50. We can notice that the dollar is under some pressure that may negatively affect further movement.
With a downward wave, we will fall to test the previous support level 103.15. If we do not get support there as well, the index should continue towards the 103.00 level. In that area, just below 102.90, we find the EMA200, which has been our support this week.
Will the dollar stop now or continue to the 104.00 level?
We would have to go up to the 103.60 level to get a bullish option. This would bring us closer to testing this week's high. With new momentum, the dollar could easily do so and form a new high. Possible higher targets are 103.80 and 104.00 levels. Next week will see more economic news in the second part of the week.
The first two days of the week do not carry anything important in terms of economic news. We will see the Bank of Canada's interest rate decision, US services PMI, US manufacturing PMI, and crude oil inventories on Wednesday.
On Thursday, we highlight the Bank of England's interest rate decision, US GDP, US new home sales, and the ECB press conference. Friday is a holiday and a non-working day in Australia, and from the news we highlight the US monthly and annual core PCE price index.
