- The dollar index is retreating after jumping to 107.11 levels on Wednesday.
Dollar Index Chart Analysis
The dollar index is retreating after jumping to 107.11 levels on Wednesday. The news that the Federal Reserve kept interest rates at their previous level had a negative impact on the index. The bearish consolidation caused the dollar to fall to the level of 105.80. We managed to get support at that level and the dollar recovered to the 106.30 level.
During the previous Asian session, we saw that the dollar did not have the strength to break above the 106.30 level, and it began a new bearish consolidation and fell towards the 105.90 level. We could soon retest yesterday’s support level.
Further bearish pressure could influence us to see a break below and the formation of a new low. The lowest possible targets are 105.70 and 105.60 levels.
106.30 is the level to take into account for a bullish option
For a bullish option, we need a positive consolidation and a move above the 106.20 level. So, we should hold on there and wait for fresh momentum that triggers a continuation of the recovery to the bullish side.
The EMA50 moving average could be a problem for us at the 106.30 level. The highest potential targets are the 106.40 and 106.50 levels. It would also be very important if we closed the gap since the market opened on Thursday.
Today, only economic news from the US market dominates. We’ll list them all: average hourly wage, nonfarm payrolls, unemployment rate, services PMI, ISM nonmanufacturing PMI, and ISM nonmanufacturing prices. It is very possible that there will be high volatility in the dollar market.
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