The dollar index is facing great challenges this week
Today, we see a continuation of the rise of the dollar index from last week.
Dollar index chart analysis
Today, we see a continuation of the rise of the dollar index from last week. A new high was formed at the 101.41 level. From that place, we started to pull back and could get support at the 101.00 level. A new positive consolidation and new dollar growth could be initiated from there. We would have to test the 101.40 level again and need a break above to continue on the bullish side. Potential higher targets are 101.50 and 101.60 levels.
We need a negative consolidation and a drop below the 101.00 level for a bearish option. The first subsequent support is at the 100.80 level with the EMA50 moving average. A break below would mean increasing pressure on the dollar and a continued pullback to lower support. Potential lower targets are 100.70 and 100.60 levels.
This week is full of very important news for the US dollar. Tomorrow we have the CB Consumer Confidence report, and then on Wednesday, Building Permits, New Home Sales, and the Fed Interest Rate Decision + press conference. On Thursday, the EBC will release its interest rate decision, US Core Durable Goods Orders, GDP, and Initial Jobless Claims. So it will be very interesting to see how it all ends at the end of this week.
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