The dollar index continues its bullish rally to 105.80

Dollar index chart analysis

During the Asian trading session, the dollar index hovered around 105.55 levels. After that, in the EU session, we see a strengthening of the dollar and a rise to 105.75 levels. There, we encounter resistance, which brings the index back to the 105.60 level, and there we get new support. For a bullish option, we need a continuation of the positive consolidation and a move to the previous resistance level. We then need a break above to continue to the bullish side. Potential higher targets are 105.80 and 105.90 levels.

We need a negative consolidation and a drop in the dollar index to the 105.50 level for the bearish option. Thus, we would put pressure on that level, which could cause a further pullback and drop to lower support levels. Potential lower targets are 105.40 and 105.30 levels. The EMA50 moving average is in the zone around 105.25 levels. Expecting the dollar to continue its growth is more realistic than going into a deeper retreat.

As for economic news, most of them will be from the US market: Building Permits, CB Consumer Confidence, New Home Sales, US GDP, Initial Jobless Claims, and Fed Chair Powell’s Speaks. From European news, the most important are German CPI, Eurozone CPI and British GDP.

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