- Since we fell below the EMA200 last Friday, the problems for the dollar index began.
Analysis of the dollar index chart
Since we fell below the EMA200 last Friday, the problems for the dollar index began. On Monday and Tuesday we tried to move above the 103.80 level. We failed to do so, triggering a strong bearish consolidation on Wednesday and a continued decline in the dollar. By the end of the day, the index value fell to 103.20 levels.
Yesterday we witnessed an attempt to maintain this level, and with the beginning of the American session, the dollar index began to weaken again and continued to consolidate bearishly. We are falling below the 103.00 level and we do not stop there, but rather we continue to fall below the 102.80 level.
The dollar is under strong pressure, pushing it to decline further
During the Asian session this morning, the dollar tried to begin an upward consolidation, but stopped at 102.90. After that, we see a new decline to the 102.72 level. A break below and a drop to a new weekly low could happen soon. Possible lower targets are 102.60 and 102.50 levels.
In the afternoon of the American session, we will receive important news from the US economy: NFP, average hourly earnings, and unemployment rate. Depending on this news, the future movement of the dollar depends. The forecast for non-farm payrolls is 198K, the previous report was 353K. Bad news will cause the dollar to fall, while good news can push it higher and start an uptrend.
