The dollar index remains calm at the start of this week
During this morning’s Asian trading session, the dollar index was pretty quiet.
Dollar index chart analysis
During this morning’s Asian trading session, the dollar index was pretty quiet. The movement took place in the 103.10-103.25 range. In the EU session, we are looking at the continuation of that movement without any hasty steps. The index is neutral as we approach the US session when there could be more volatility on the chart.
On Friday afternoon, the dollar index retreated to 103.05, staying there. If we fall below 103.00, it could trigger a deeper pullback. Potential lower targets are 102.90 and 102.80. Last week’s low was 102.16.
The index is calm for now and has support at 103.10 as of this morning.
For a bullish option, we need a positive consolidation and a jump to the 103.30 level, which will form a new weekly high. After that, the dollar index needs to stabilize at a new level before starting a further recovery to the bullish side. Potential higher targets are the 103.40 and 103.50 levels. We could have additional resistance in the EMA 200 moving average at the 10.40 level. Since the beginning of August, the EMA 200 has been a resistance for us to move to the bullish side.
Today, we have no important economic news. However, the first strong news awaits us tomorrow: The Producer Price Index (PPI), a leading indicator of consumer price inflation. Forecasts are that the PPI data could be in line with the past published. Wednesday will be very interesting. First, in the Asian session, the RBNZ will announce the future interest rate. Then, in the EU session, data on British inflation will be published. On Wednesday afternoon, we have US inflation, annual, monthly, and core. These data will certainly influence the movement of the dollar index, so it’s crucial to stay updated and prepared for potential market shifts.
The post The dollar index remains calm at the start of this week appeared first on FinanceBrokerage.
