- The dollar index started this year successfully.
Analysis of the dollar index chart
The dollar index started this year successfully. We are in a bullish consolidation until the market open on January 2nd. We started this week at 101.38 and are now at 102.44. The dollar easily crossed the EMA50 and continued the uptrend. During the Asian trading session, the index remained above 102.00, leading to further recovery. Possible higher targets are 102.60 and 102.80 levels.
We need a negative reinforcement and a new test of the 102.00 level for a bearish option. A break below there means that we do not have the strength to recover, and we will fall back. We will have the opportunity again to test the EMA50, the possible lower targets are the 101.80 and 101.60 levels.
The first week after the new year brings a lot of news
US data yesterday showed that there was a decline in the US manufacturing PMI from 49.4 to 47.9. Despite the bad result, the dollar continued its recovery without this affecting it. Tomorrow will be interesting as we will receive a speech from FOMC members late in the evening. Their meeting may be more interesting for further movement of the dollar index.
Other news tomorrow include the ISM Manufacturing PMI and Jobs JOLTs. On Thursday, at the beginning of the US session, we have news about German inflation, then the ADP NFP report, the previous week's initial job claims and the services PMI. On Friday, we will start with Eurozone inflation and continue with the Non-Farm Payrolls and Unemployment Rate report. The first week of the new year certainly brings with it a lot of news that may significantly affect the movement of the dollar index and other pairs.
Additional video: Weekly news summary from the markets
