- During the Asian session the dollar index successfully held above the 104.00 level.
Dollar Index Chart Analysis
During the Asian session the dollar index successfully held above the 104.00 level. At the opening of the EU session, we jumped to 104.20 levels. We stop at that level and pull back to 104.00, looking for support for new bullish momentum and breaking above the 104.20 level. Last week, the high of the dollar index was at the level of 104.26; If we manage to break above 104.20 today, we will definitely see a jump above last week's high.
The highest potential targets are the 104.30 and 104.40 levels. We need a pullback below the support at the 104.00 level for a bearish option. This would open the door to the formation of a new daily low. The first subsequent support is the 103.80 level, along with the EMA50 moving average. A break below leads to the formation of a new low and thus we get confirmation of the bearish option. The lowest possible targets are the levels 103.70 and 103.60.
This week, the focus is on central bank decisions
Tomorrow, before the central banks, we expect data on US monthly and annual inflation, as well as data on core inflation. On Wednesday, the biggest news is the Federal Reserve's decision on the future interest rate. Expectations are that the interest rate will remain at the same level. In addition to the Federal Reserve, on Wednesday we will have the GDP of Great Britain and New Zealand.
On Thursday the focus is on banks on European soil. At first, first the SNB, then the Bank of England and the ECB. The three banks will present their projections on their future interest rates. Economists estimate that interest rates will remain the same as before and that there should be no surprises.
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