- This week, the dollar index consolidated sideways in the 102.00-102.80 range. We had constant support from the EMA50 moving average.
Dollar Index Chart Analysis
This week, the dollar index consolidated sideways in the 102.00-102.80 range. We had constant support from the EMA50 moving average. During the previous Asian session, the dollar moved in the range of 102.20-102.40, remaining low and close to support. Staying in this zone for too long would increase pressure on the EMA50 and the dollar could easily fall and form a new low. The lowest possible targets are the 102.00 and 101.80 levels.
We need to rise to the 102.60 level to have a bullish option. So we need to stay above there to have a chance to visit the 102.80 resistance level this week. With a dollar break above, we will form a new high and strengthen the momentum to continue to the bullish side. The highest potential targets are the 103.00 and 103.20 levels.
Reduced news volume over the next week.
Monday is a US holiday, Martin Luther King Jr. Day, and the market will not be open during the US session. On Tuesday we will have the German CPI for December from the EU session. On Wednesday there is mixed news from all sessions: first Chinese GDP, then in the EU session UK CPI and Eurozone CPI, later in the US session we have December underlying retail sales and retail sales.
On Thursday and Friday, dollar news dominates initial jobless claims, the Philadelphia Fed manufacturing index and December existing home sales. It could be interesting because the dollar is in a very important area for future movements.
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