- This week the dollar consolidated sideways in the 106.00-106.80 range.
Dollar Index Chart Analysis
This week the dollar consolidated sideways in the 106.00-106.80 range. On several occasions we tested the upper and lower resistance lines. Today we find resistance at the 106.40 level, somewhere in the middle of this range.
From that level, the dollar makes a bearish push and falls back to 106.20, approaching the support zone again. We are now following the movement of the index because a break below and the formation of a new weekly low could occur.
The lowest possible targets are the 105.80 and 105.60 levels. We need positive consolidation and a return above the 106.40 level for a bullish call. Then we would have to stay there to start a further recovery of the dollar index with new momentum. The highest potential targets are the 106.60 and 106.80 levels.
Important economic news
Next week will be filled with lots of important economic news from all markets. The ECB will present its opinion on future interest rates on Thursday and we will hold an ECB press conference later in the day. A day earlier, on Wednesday, the Bank of Canada will announce the future interest rate and later, Federal Reserve Chairman Powell will deliver his speech. Other economic news is US GDP, Services PMI, Building Permits, Core PCE Price Index, etc.
ADDITIONAL VIDEO: Weekly summary of market news
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