The dollar index managed to hold above 102.00 this week
- This week, the dollar index moved in a sideways consolidation in the 102.00-102.80 range. We had constant support from the EMA50 moving average.
Dollar index chart analysis
This week, the dollar index moved in a sideways consolidation in the 102.00-102.80 range. We had constant support from the EMA50 moving average. During the previous Asian session, the dollar moved in the 102.20-102.40 range, holding low and close to support. Staying in this zone for too long would increase the pressure on the EMA50, and the dollar could easily slip and form a new low. Potential lower targets are 102.00 and 101.80 levels.
We need to move up to the 102.60 level for a bullish option. Then, it is necessary to hold above there so that we have the opportunity to visit the 102.80 resistance level this week. With a breakout of the dollar above, we will form a new high and strengthen the momentum for further continuation to the bullish side. Potential higher targets are 103.00 and 103.20 levels.
Reduced volume of news over the next week
On Monday is a US holiday, Martin Luther King Jr Day, and the market will not be open during the US session. On Tuesday, we have the German CPI for December from the EU session. Wednesday is mixed with news from all sessions: first Chinese GDP, then in the EU session British CPi and Eurozone CPI, later in the US session we have Core Retail Sales for December and Retail Sales.
On Thursday and Friday, dollar news dominates Initial Jobless Claims, the Philadelphia Fed Manufacturing Index and Existing Home Sales for December. It could be interesting because the dollar is in a very important zone for future movement.
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