- The dollar index continues to retreat after last week’s formation of a high at the 103.68 level.
Dollar index chart analysis
The dollar index continues to retreat after last week’s formation of a high at the 103.68 level. In the Asian trading session, we hovered around the 103,400 level, only to see a drop below it and a pullback to the current support at the 103.25 level. Increased bearish pressure could trigger a pullback that would continue until the end of the week. Potential lower targets are 103.00 and 102.80 levels.
The dollar has additional support at the 103.00 level in the EMA50 moving average. We need a positive consolidation and a move above the 103.40 level for a bullish option first. Then we need to hold on up there and form a new bottom there. After that, we can expect a bullish consolidation and recovery of the dollar. Potential higher targets are 103.60 and 103.80 levels.
This week, the most important news is from the US market, which could impact the dollar index most. On Tuesday, we have Existing Home Sales. Wednesday is full of dollar news: Building Permits, US Services PMI, New Home Sales, plus GER, EU, GBP and US Manufacturing PMI reports. For Thursday, we highlight Core Durable Goods Orders and Initial Jobless Claims. And finally, on Friday, we have the German GDP report, ECB President Lagarde speaks, and Fed Chair Powell speaks.