Weekly Movement of the Dollar Index Stable Above 104.00

Dollar index chart analysis

The movement of the dollar index was stable above the 104.00 level this week. On Monday and Tuesday, the dollar was at a maximum above the 104.50 level, with the formation of a high at 104.60. Tuesday afternoon and until Thursday’s Asian session, the dollar was under pressure to stay above the 104.00 level. He succeeded in that, and on the same day, it moved to 104.40 levels. Today’s picture is quite calm, and we are moving in the 104.10-104.25 range.

We would need some momentum above 104.40 to re-start the bullish consolidation. We would then need to hold above to continue towards this week’s resistance at 104.60. A retest of that resistance could lead to a break above and the formation of a new high. Potential higher targets are 104.70 and 104.80 levels.

Can the dollar index go below 104.00, or does it stay above?

We need a pullback to this week’s support at the 104.00 level for a bearish option. A fall below this level would certainly increase the bearish momentum and pressure the dollar to continue its retreat. At the 103.90 level, we encounter the EMA200; there, we expect to see a certain fluctuation in the index. Potential lower targets are 103.80 and 103.60 levels.

This morning’s economic news showed that inflation in Germany rose slightly from 0.1% to 0.2%. Such news favoured the dollar while the euro was under pressure. No major important economic news in the afternoon in the US session. Next week will be interesting because we will have a lot of important indicators such as US inflation, British GDP, and Japanese GDP.

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