- The beginning of this week was very positive for the dollar index, as we witnessed a jump to 104.60 levels.
Analysis of the dollar index chart
The beginning of this week was very positive for the dollar index, as we witnessed a jump to 104.60 levels. On Tuesday, the dollar reached this level again but failed to break through and stopped there. As the upward momentum declines, we see the beginning of bearish consolidation, which took us to 104.20 levels by the end of the day.
During the previous Asian session, the USD Index remained under pressure below the 104.20 level and moved in the 104.00-104.20 range. It remains above the weekly opening price, raising optimism that we may see a new bullish consolidation. We once again need to move above 104.20 to break out of this uncomfortable range. Possible higher targets are 104.30 and 104.40 levels.
Dollar index under pressure at 104.00; Is there a sign of a decline below?
We need to see the dollar fall below the 104.00 support level to get a bearish option. We had a small gap at the open this week, and a drop to 103.90 will cover that. There, we will be under pressure to start further pullback in search of a new support level. Possible lower targets are 103.80 and 103.70 levels. Additional support is the EMA200 at around 103.80 levels.
Today's economic news should not significantly affect the dollar index. In the European Union session, German industrial production showed a slowdown and decline. In the afternoon, in the US session, in the big news, we highlight crude oil inventories and the 10-year bond auction, and towards the end of the market, we will have FOMC member Bowman speaking.
