- During the previous Asian trading session, the dollar index rose to 103.48, forming the highest weekly level there.
Analysis of the dollar index chart
During the previous Asian trading session, the dollar index rose to 103.48, forming the highest weekly level there. After that we stop there and return to the support level 103.30. The dollar is still under pressure because we are in that area, and it could break out soon and form a new daily low.
Possible lower targets are 103.20 and 103.10 levels. In the area around 103.20 levels, we face the EMA50 and EMA200 moving averages. We could easily get their support and stop the bearish option in that area. We cannot rule out testing 103.00 until this week's low at 102.63.
Did the dollar index strengthen to return above 104.00 or will it continue in the downward trend?
We need positive consolidation and a breakout of the resistance level this morning at 103.50 for a bullish option. If we can move above that, we will reach a new weekly high, confirming the bullish momentum. After that, we will have a better loss position for further recovery. Possible higher targets are 103.60 and 103.70 levels.
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