- The dollar has been very bearish this week. Yesterday we saw a drop to 103.43.
Analysis of the dollar index chart
The dollar has been very bearish this week. Yesterday, we saw a drop to 103.43. The index's decline began last Wednesday after it jumped to 104.98 levels. On Monday we managed to hold above 104.00, but on Tuesday we saw a drop lower and a new low was formed at 103.80.
Wednesday brought us cohesion and stability that only lasted until Thursday. Yesterday, in the Asian session, the dollar was under pressure and started to consolidate bearish. This continued until we reached the level of 103.40. After that, the index consolidated and started to recover upwards to 104.10 levels.
Is the dollar index heading to 103.00 after falling from the 104.00 level?
In this area we face the EMA200 moving average, which puts additional pressure on the indicator and its movement, and does not allow us to move above it. During the Asian session this morning, we saw a pullback below the 104.00 level, adding pressure to the already weak dollar.
Next week, we will have a lot of important economic news that may shake the market. New home sales on Monday, core durable goods orders and consumer confidence on Tuesday. On Wednesday morning, the Reserve Bank of New Zealand will announce whether it will leave interest rates below where they were before or whether we will see a change. In the afternoon, the important news will be the GDP from the US market.
