The dollar index is at 103.60 level ahead of the NFP report

Dollar index chart analysis

The dollar index started well at the beginning of this week by jumping up to 104.30 levels. We encounter resistance at that level and make a pullback to the 102.90 level on Wednesday. After that, the dollar gets support at that level, and we start a new recovery up to the 103.70 level. During the Asian trading session, we see that we are not able to break above, and we are pulling back slightly to the 103.60 level.

We need a negative consolidation and a drop below the 103.40 level for a bearish option. We would also fall below the EMA50 moving average, which would increase the bearish pressure on the dollar. Potential lower targets are 103.20 and 103.00 levels.

We need a positive consolidation and a break above the 103.70 level for a bullish option. Then we need to maintain above in order to stabilize there and initiate further recovery. Potential higher targets are 104.00 and 104.20 levels.

In today’s US session, important economic news awaits us: NFP, Unemployment and ISM Manufacturing PMI report later. This news could increase the volatility of the dollar index and all USD pairs.

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