Dollar index remains positive at the end of the week

• The dollar index's movement this week occurred mainly in the range of 104.20-104.50.

Graphical analysis of the dollar index

The dollar index movement this week occurred mainly in the range of 104.20-104.50. Yesterday, we had a short-term jump to the level of 104.10, but we quickly returned to the previous range. During the Asian session this morning, the index first retreated to the support at 104.25. After that, a bullish consolidation started to the levels of 104.38. We have broken above the EMA 200 moving average and we expect to remain there.

If we manage to maintain this momentum, we can anticipate a new uptrend and a possible rise to the 104.50 level. We are currently within a short distance of the weekly high at 104.55 from Wednesday. A return to that level could trigger a bullish rise to a new higher high. The 104.60 and 104.70 levels could be our next targets.

The dollar is trying to stabilize above the 200 EMA to find its support.

For a bearish option on the dollar index, we need a break below the 104.20 level. This is where we slowly enter the critical support zone of this week. Holding too long could easily lead to a push below to a new weekly low. With that step, we will continue on the bearish side. Possible lower targets are the 104.00 and 103.90 levels.

This morning’s Asian session brought news of Tokyo’s core CPI, which came in line with the forecast at 2.2%. The EU session was relatively quiet, and now our attention turns to the upcoming US session, where we will receive data on the core PCE price index, personal spending, and personal income. The outcome of these reports could have a significant impact on the dollar index chart, so it is a session not to be missed.