- The early part of this week was spent pushing the Dollar Index back to 102.46 levels.
Dollar Index Chart Analysis
The early part of this week was spent pushing the Dollar Index back to 102.46 levels. The fall stopped at that level and the dollar began a bullish consolidation to 103.60. We formed this week's high and today we move in the range 103.30-103.50. We are approaching overhead resistance, which would produce a break above and form a new high for the dollar.
It is also positive that we obtain support at the EMA50 moving average, strengthening the bullish option. The highest potential targets are the 103.80 and 104.00 levels. We need a break below the current support level of 103.30 for a bearish option. After that, the dollar would be under pressure to continue its pullback and hit a daily low. The lowest possible targets are the 103.00 and 102.80 levels.
Economic news for next week.
Next week's economic news will be dominated primarily by the US market. Based on this, we can expect volatility on the dollar index chart. There is nothing interesting in the news on Monday and the important news starts on Tuesday. First thing in the morning we expect the RBA meeting and the decision on the future interest rate. The interest rate is expected to remain at the same level as last time, at 4.35%.
After that comes a bunch of important news from the US market: Services PMI, ISM Non-Manufacturing PMI, and JOLT Job Openings. Wednesday brings us the change in ADP non-farm employment, crude oil inventories and the Bank of Canada's decision on its future interest rate.
It is expected to remain at the same level as before: 5.00%. Mixed Friday with news from all three sessions: first the Japanese GDP, then the German CPI and finally the NFP and the unemployment rate.
ADDITIONAL VIDEO: Weekly summary of market news
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