- The dollar index started this week at the 106.16 level.
Dollar Index Chart Analysis
The dollar index started this week at the 106.16 level. In the first two days, we saw a pullback and the formation of a dollar low at the level of 105.36. We managed to get support at that level and start a bullish consolidation that took the dollar to the 106.89 level. In that area we encountered resistance and after that we were unable to overcome it, but instead began to retreat.
During the previous Asian session, the dollar encountered resistance at the 106.70 level, leading to a bearish consolidation and a drop to the 106.52 level. A fall below this support would lead to the formation of a new low and we would have a strong bearish option. The lowest possible targets are 106.40 and 106.20 levels.
What do we need for the growth of the dollar?
We need a positive consolidation and a price return to the 106.80 level for a bullish option. So we should move up and try to stay there. After that, we could expect to start further growth and form a new high dollar index. The highest potential targets are the 107.00 and 107.10 levels.
Next week will be full of economic news from all three markets: Asia, Europe and the United States. The most important news is the Federal Reserve’s decision on the future interest rate. It is estimated that the interest rate will remain at the same level as before, 5.50%. The Bank of England’s report on its future interest rate will also be important. The interest rate is also expected to remain at the same level. Other news is German GDP, European CPI, Chinese Manufacturing PM, NFP report and US unemployment rate.
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