The dollar index manages to stay above 105.00 for now
- The dollar index is recovering from last week’s bearish trend.
Dollar index chart analysis
The dollar index is recovering from last week’s bearish trend. On Monday, after forming a new low at 104.80, we saw the initiation of a bullish consolidation. The index stabilized above the 105.00 level yesterday and received support from the EMA 50 moving average. Thus, yesterday, we saw a rise to 105.20, where we formed this week’s high. Today’s picture is slightly bearish, and the dollar is pulling back to the 105.00 level.
With continued pressure on the index, we will see a pullback below the EMA 50 moving average. With that, we move again to the bearish side. Potential lower targets are 104.90 and 104.80 levels. In the 104.87 dollar zone, the index will test the weekly open price in order to try to hold above on the positive side.
The dollar has started a recovery but needs momentum above the EMA 200 moving average
We need a positive consolidation and growth of the dollar index above the 105.20 level for a bullish option. It then needs to stabilize there before proceeding with further recovery. By breaking above 105.30, we jump over the EMA 200 moving average and get its support to continue to the bullish side. Potential higher targets are 105.40 and 105.50 levels.
Today, in the US session, Fed Chairman Jerome Powell will speak, and then the data of Crude Oil Inventories and 10-Year Note Auction will be published. During Powell’s speech, we can expect an increase in the volatility of the dollar index chart. We also expect to hear his view of the American economy and the way monetary policy will be conducted.
The post The dollar index manages to stay above 105.00 for now appeared first on FinanceBrokerage.
