The dollar index awaits the Fed at 104.00
- Today, we look for the dollar index to rise to a new weekly high of 104.15.
Analysis of the dollar index chart
Today, we look for the dollar index to rise to a new weekly high of 104.15. During the Asian session this morning, we managed to hold above the 103.80 level and began an upward consolidation at the current level. Before the opening of the American session, the index declines slightly to 104.10. We may see a test of 104.00. A bigger pullback is smiling at us with a drop below that, perhaps even to the Asian bottom.
This may destabilize the dollar index's bullish plans. Possible lower targets are 103.70 and 103.60 levels. In the area around 103.75, additional support is at the EMA50, while the EMA200 is lower at 103.45. For now, we are sticking to the upside and encouraging the upside to continue.
Does the dollar index have the strength to stay above 104.00?
We need continued bullish consolidation today for a bullish option. By exceeding the 104.15 level, we will reach a new weekly high, thus confirming bullish control. Possible higher targets are 104.20 and 104.30 levels. This jump would test the resistance area in March.
Tonight in the US session, we have important news for the dollar index: the Fed's future interest rate announcement. The current interest rate is 5.50%, and it is expected to remain at the same level after the report. The reason for this decision is that inflation is still high, which leads to a lower interest rate.
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