- This week we saw the dollar index decline to 103.17, forming a new low there.
Dollar Index Chart Analysis
This week we saw the dollar index decline to 103.17, forming a new low there. This happened on Tuesday, after which we managed to stop the decline and gain support in that area. The dollar begins a bullish consolidation and jumps to the level of 104.20. We literally just touched the EMA50 moving average and started a new pullback.
That bearish consolidation took us to the 103.50 level, where we are getting new support. Next, we see a sideways consolidation in the 103.50-103.80 range. The negative for the dollar is that it could close below the market opening price on Monday, and the positive is that the fall is minimal compared to last Friday’s closing price.
103.20 is bullish support and 104.00 is bearish resistance
We need a positive consolidation and a move to the 104.00 level for a bullish option. There we would be under more pressure because we ran into the EMA50 moving average, which in the previous attempt managed to resist and send us lower. With a break above that level, it would be much easier for the dollar to initiate further growth on the bullish side. The highest potential targets are the 104.20 and 104.40 levels.
Next week we will have more economic news from all three markets. Monday is in charge of New Home Construction and Sales Permits; Wednesday we have the RBNZ and interest rate statement, German CPI and US GDP; on Thursday, the China Manufacturing PMI, the Eurozone CPI and the US Core PCE Price Index. Wrapping up on Friday, we have the US ISM Manufacturing PMI and the US President’s Report. Fed, Powell.
ADDITIONAL VIDEO: Weekly summary of market news
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod?n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=();t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)(0);s.parentNode.insertBefore(t,s)}(window,document,’script’,’https://connect.facebook.net/en_US/fbevents.js’);fbq(‘init’,’504526293689977′);fbq(‘track’,’PageView’)
