The value of the dollar index returned above 104.80
- The value of the dollar index fell to the 104.33 level on Tuesday, a new weekly low.
Dollar index chart analysis
The value of the dollar index fell to the 104.33 level on Tuesday, a new weekly low. The retreat was stopped there; the index started a new positive consolidation and closed the day at the 104.60 level. During this morning’s Asian trading session, we saw a continuation of the bullish side to the 104.80 level. With that step, we returned above the EMA200 and will now try to hold above it.
If the dollar index manages to stabilize above the 104.80 level, it could signal a potential for positive consolidation. This could open up opportunities for traders to aim for higher targets at 104.85 and 104.90. However, it’s important to note that the dollar index’s high last week was at 105.11, which could serve as a resistance level.
The dollar is again above the EMA200; does it have the strength for a new recovery?
We need a price pullback below the EMA200 and 104.70 levels for a bearish option. That move of the dollar index could initiate the beginning of a deeper retreat. We will try to look for support at 104.60 in the EMA50 moving average. If even that level does not hold, the index will be forced to look for lower new support. Potential lower targets are 104.50 and 104.40 levels.
Among the crucial news this afternoon, we single out the German CPI at the start of the US session. Data on US GDP, Initial Jobless Claims and Crude Oil Inventories will be released on Thursday. These releases can significantly impact the market, so staying informed is essential. We have news for Friday with all three trading sessions. First, the Chinese Manufacturing PMI index, the Eurozone CPI, the US Core PCE Price Index and the Chicago PMI.
The post The value of the dollar index returned above 104.80 appeared first on FinanceBrokerage.
