The dollar index continues to grow above the 105.00 level

Dollar index chart analysis

During this week, the dollar index continued to dominate in relation to other currencies. We saw a break above the 105.00 level and the formation of a new high at the 105.15 level. During the Asian trading session, the dollar weakened slightly to 104.75 levels. He manages to get support there and initiate a new positive consolidation. We are now back at the 105.00 level and could soon test the previous high. Potential higher targets are 105.20 and 105.40 levels.

We need a negative consolidation and a drop below the 104.80 support level for a bearish option. This would mean that the dollar goes on the defensive with the formation of a new low, thus confirming the bearish option. Potential lower targets are 104.60 and 104.40 levels.

This week’s economic news was generally positive for the dollar index. Initial Jobless Claims showed that claims for unemployment insurance fell for the first time last week. The German inflation news showed no fall in inflation, and the euro remained under pressure, pushing the dollar higher. Next week, we have the US CPI and the ECB interest rate decision.

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