- Since last Friday we fell below the EMA200 moving average, problems began for the dollar index.
Dollar Index Chart Analysis
Since last Friday we fell below the EMA200 moving average, problems began for the dollar index. On Monday and Tuesday we tried to break through the 103.80 level. We failed to do so, leading to the start of a strong bearish consolidation on Wednesday and the continuation of the dollar's decline. At the end of the day, the value of the index fell to the level of 103.20.
Yesterday we saw an attempt to hold above that level and with the start of the US session, the dollar index began to weaken again and the bearish consolidation continued. We fall below the 103.00 level and we do not stop there but continue to slide below the 102.80 level.
The dollar is under strong pressure to fall further
During the Asian session this morning, the dollar attempted to start a bullish consolidation, but was stopped at 102.90. After that, we see a new pullback to the level of 102.72. A break below and a drop to a new weekly low could soon occur. The lowest possible targets are the 102.60 and 102.50 levels.
In the afternoon of the US session we will have important news from the US economy: NFP, average hourly wage and unemployment rate. The future movement of the dollar depends on this news. Expectations for nonfarm payrolls are 198,000, and the previous report was 353,000. Bad news will cause the dollar to fall, while good news can push it up and start an uptrend.
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