Latest on Dollar Index: Falling Below 104.20 Today
- Last week, we saw a jump in the dollar index to 104.97 levels.
Dollar index chart analysis
Last week, we saw a jump in the dollar index to 104.97 levels. We were within reach of the 105.00 level. After that, from Wednesday, the dollar was in retreat, which lasted until the end of the week, with the formation of a low at the 104.20 level. During this morning’s Asian trading session, the dollar remained under pressure in the zone around the 104.20 level. Thus, a new low was formed today at the 104.14 level.
It is negative for the dollar that it has now fallen below the EMA200 moving average. That could add to the bearish pressure to see a further pullback. Potential lower targets are 104.10 and 104.00 levels. The 4.00 level is the February zoo of support and a fall below it would be very negative for the dollar index.
Can the dollar index climb again to the 105.00 level?
To start a bullish consolidation, we must first get back above the EMA200 moving average. With his support, it would be easier for us to start recovery. Stabilization above 104.40 would move us away from the uncomfortable zone, and the relieved dollar could initiate a bullish consolidation. Potential higher targets are 104.50 and 104.60 levels.
This week, we have less important economic news. Monday is the Family Day holiday in Canada, while in the US, it is Washington’s Birthday holiday. Wednesday brings us the FOMC meeting. We start with Eurozone inflation on Thursday, followed by US Initial Jobless Claims, US Manufacturing and Service PMI. And finally, on Friday, we have the German GDP for the fourth quarter of 2023.
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