- On Wednesday we saw a jump in the dollar index to 106.84 levels.
Dollar Index Chart Analysis
On Wednesday we saw a jump in the dollar index to 106.84 levels. The last time we were in that area was in November of last year. The index finds resistance at that level and pulls back to today’s support at the 105.65 level. Yesterday’s support at the 106.00 level did not hold and we saw a break below. We are now looking at this week’s market opening price at 105.55 as the next support zone. The lowest possible targets are the 105.50 and 105.40 levels.
We need a positive consolidation and a return to the area around the 106.00 level for a bullish option. So we need to break above and try to stay above. After that, we could expect to see a continuation of the bullish scenario. The highest potential targets are the 106.20 and 106.40 levels.
Next week, economic news will dominate the US market, the EU session will be without major news, while in the Asian session we await the RBNZ decision on the interest rate and the China manufacturing purchasing managers’ index . Among the most important news from the US we highlight the following: Fed Chairman Powell speaks on Monday, services PMI, NFP and unemployment rate on Friday.
ADDITIONAL VIDEO: Weekly summary of market news
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