The dollar index retreats to 104.00, looking for new support

The dollar index has been retreating since the market opened last night at 104.25.

Dollar index chart analysis

The dollar index has been retreating since the market opened last night at 104.25. We are currently at the 103.98 level, and there is a high probability that we will continue to pull back until the end of the day. Potential lower levels are 103.80 and 103.70 levels. Additional support at 103.70 is in the EMA50 moving average, and we could expect a stop of this pullback there.

We need a positive consolidation and a return to the zone around the 104.20 level for a bullish option. Then we need to maintain ourselves up there in order to consolidate there and start further recovery from there. Potential higher targets are 104.40 and 104.60 levels.

This week is not full of economic news, but we can single out the following: on Tuesday RBA Interest Rate Decision; on Wednesday US Services PMI, ISM Non-Manufacturing PMI and BoC Interest Rate Decision; on Thursday US Initial Jobless Claims; on Friday, JPY GDP (Q2) and German CPI (Aug).

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