- The movement of the dollar index this week was in a wide range.
Analysis of the dollar index chart
The movement of the dollar index this week was in a wide range. On Tuesday, we rose to levels of 103.81; On Wednesday, we fell to the 102.80 support levels. Yesterday, we settled above the weekly opening price, which strengthened the dollar’s position and raised it to levels of 103.68. During the Asian trading session, the dollar made another attempt to rise above 103.70, but this time it encountered resistance and fell to 103.40 levels.
The current picture for the dollar tells us that we can return to the EMA200 in the 103.20 area and look for new, more realistic support there. If we fail, we will see a break higher and test the 103.00 level and this week's low at 102.80. Possible lower targets are 102.70 and 102.60 levels.
Can the dollar index rise above 104.00 next week?
For such an option, we need to stay above the 103.50 level. It would be ideal to form a bottom there and start the recovery on the upside from it. The first task is to test this week's high at 103.80, possible higher targets are 103.90 and 104.00.
Next week will be full of important economic news from all three markets. The strongest news awaits us from Asia on Tuesday: China's manufacturing PMI. The forecast is higher than the previous forecast from December.
From the EU market, we first have German GDP on Tuesday, Eurozone CPI on Wednesday, and the Bank of England on its future interest rate. Expectations are that they will leave it at the same level as Ranga at 5.25%.
From the US market, we will only highlight the most important thing, which is the Fed's interest rate decision on Wednesday and the press conference. Expectations indicate that the Federal Reserve will leave interest rates at 5.50%. On Friday, we have the Non-Farm Payrolls and Unemployment reports.
