- For most of this week, the dollar index retreated from 106.60 to 105.35.
Dollar Index Chart Analysis
For most of this week, the dollar index retreated from 106.60 to 105.35. Yesterday we managed to stop the decline and form a low at the level 105.53. The positive economic news influenced the dollar to gain support and initiate bullish momentum above the 106.00 level, forming a high at the 106.60 level.
During the previous Asian session, the dollar retreated to reach the support at the 106.30 level. There it obtains new support and forms a higher low, from where we start the continuation of the bullish option. Additional support for the bullish option is the EMA50 moving average in the area around the 106.20 level.
We are now waiting for a break above 106.60 to continue further recovery towards the bullish side. The highest potential targets are the 106.80 and 107.00 levels.
We need negative consolidation and pullback.
We need a negative consolidation and a pullback to the 106.20 support level for a bearish option. A fall below this level and the EMA50 moving average would increase bearish pressure on the Dollar Index to continue its pullback to lower levels. The lowest possible targets are the 106.00 and 105.80 levels.
Next week’s economic news will once again dominate the US market timing: retail sales, building permits, crude oil inventories, initial jobless claims, Philadelphia Federal Reserve manufacturing index, existing home sales and the President’s speech. Federal Reserve Chairman Powell on Friday. We will highlight from other markets: Chinese GDP, CPI in euros and CPI in pounds sterling.
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