- The previous downward trend in the dollar index stopped yesterday at the level of 103.60.
Analysis of the dollar index chart
The previous downward trend in the dollar index stopped yesterday at the level of 103.60. In that area, the dollar gains support and turns to the upside. During the Asian trading session this morning, the dollar's bullish consolidation continued above the 104.00 level. In the European Union session, the index continues to dominate and forms the highest weekly level at 104.25.
From this level, we made a slight pullback to the 104.00 level and managed to stay above it. In that area, we get additional support at the EMA200, and the dollar begins a new bullish consolidation. We expect to see a break above 104.25 soon and a new top formed. Possible higher targets are 104.30 and 104.40 levels.
Does the dollar index have the strength needed to drive further tangible growth?
We need a new negative consolidation and a break below EMA200 and 104.00 levels for the downside. This increases pressure on the indicator to start further decline. We are again looking at the daily open price of 103.80 as a potential level at which we can stop the pivot. Possible lower targets are 103.70 and 103.60 levels.
At the beginning of the American session, the important news for the US economy is the GDP. Expectations indicate that there may be a decline from 4.9% to 3.3%, as analysts expect. This news will certainly have an impact on the dollar chart, regardless of what is released. Tomorrow we'll look at the German CPI, US Core PCE Price Index, Initial Jobless Claims and Chicago PMI. For Friday, we have Eurozone inflation and China's manufacturing PMI.
