The dollar index surged above the EMA 200 this morning
On Friday, the dollar index retreated to 100.60, gaining new supportDollar index chart analysis
On Friday, the dollar index retreated to 100.60, gaining that new support. Shortly after that, the index rose above 101.00 and managed to stabilize. During this morning’s Asian trading session, we saw the initiation of bullish consolidation and the growth of the index up to 101.70 levels. We now encounter resistance in that zone and stop the bullish consolidation.
To continue on the bullish side, we need a new bullish impulse and a return of the dollar index above the 101.70 level. After that, we will see the formation of a new weekly high and confirmation of the strengthening of the bullish option. Potential higher targets are 101.80 and 102.00 levels. Last week’s high was at 101.91.
The index is trying to hold on to the bullish side at the start of Monday.
At today’s high, the dollar index encounters resistance and makes a retreat to the 101.50 level. This could be the beginning of a new bearish consolidation. At 101.35, we will meet the EMA 200 moving average. To continue on the bearish side, we need a breakout below and a pullback to the daily open price of 101.18. Here, we hope for further support and staying above. If the bearish momentum continues, we have to see a further pullback and descent to a new daily low. Potential lower targets are 101.00 and 100.80 levels.
From today’s news, we will highlight Japan’s GDP. The data were weaker than planned, which influenced the yen to retreat. We are sculpting the German CPI for tomorrow, and the forecast is that there could be a decrease of 0.1%. Wednesday will be very interesting: we start the day with British GDP, and in the US session, data on US inflation will be published. Expectations are that inflation will fall from 2.9% to 2.6%.
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