The dollar index remains above 103.00 ahead of the Fed week
- The movement of the dollar index this week was in a wide range.
Dollar index chart analysis
The movement of the dollar index this week was in a wide range. On Tuesday, we climbed to 103.81 levels; on Wednesday, we went down to 102.80 support levels. Yesterday, we stabilized above the weekly open price, which strengthened the dollar’s position and raised it to 103.68 levels. During the Asian trading session, the dollar had another attempt to climb above 103.70, but this time, it encountered resistance and made a pullback up to 103.40 levels.
The current picture of the dollar tells us that we could go back to the EMA200 moving average in the 103.20 zone and look for new, more concrete support there. If we fail, we will see a break above and test the 103.00 level and this week’s low at 102.80. Potential lower targets are 102.70 and 102.60 levels.
Can the dollar index go above 104.00 next week?
For such an option, we need to hold above the 103.50 level. It would be ideal to form a bottom there and start a recovery on the bullish side from it. The first task is to test this week’s high at the 103.80 level, and the potential higher targets are the 103.90 and 104.00 levels.
Next week is full of important economic news from all three markets. The strongest news awaits us from Asia on Tuesday: the Chinese manufacturing PMI index. The forecast is higher than the previous one from December.
From the EU market, we first have the German GDP on Tuesday, the Eurozone CPI on Wednesday, and the English bank on the future interest rate. The forecast is that they will leave it at the same level as ranja at 5.25%.
From the US market, we will highlight only the most important, the FED Interest rate decision on Wednesday and the press conference. The forecast is that the Fed will leave the interest rate at the 5.50% level. On Friday, we have NFP and Unemploiment rete reports.
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