This week, the dollar index began a bullish consolidation and reached 103.69.
Dollar Index Chart Analysis
This week, the dollar index began a bullish consolidation and reached 103.69. This high was formed on Wednesday, after which we see a pullback to the support at the level 10315. Yesterday we saw a new bullish attempt, which stopped at the level 103.60. During the previous Asian session, the dollar moved in the range of 103.30-103.50. We can notice that the dollar is under a little pressure that could negatively affect future movements.
With bearish momentum, we would go down to test 103.15, the previous support level. If we do not find support there either, the index should continue towards the 103.00 level. In that area, slightly below 102.90, we find the EMA200 moving average, which was our support this week.
Does the dollar stop for now or continue towards the 104.00 level?
We would have to go up to the 103.60 level to have a bullish option. That would bring us closer to testing this week's high. With fresh momentum, the dollar could easily achieve this and reach a new high. The highest potential targets are the 103.80 and 104.00 levels. Next week there will be more economic news in the second part of the week.
The first two days of the week do not bring anything important in terms of economic news. On Wednesday we will see the BoC interest rate decision, US services PMI, US manufacturing PMI and crude oil inventories.
On Thursday we highlighted the EBC interest rate decision, US GDP, US new home sales and the ECB press conference. Friday is a holiday and non-working day in Australia, and in the news we highlight the US monthly and annual core PCE price index.
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