The dollar index is at the support level at 106.00

Dollar index chart analysis

The dollar index is in retreat after jumping to 107.11 levels on Wednesday. The news that the Fed left interest rates at their previous level had a negative impact on the index. Bearish consolidation lowered the dollar to the 105.80 level. We managed to get support at that level, and the dollar recovered to the 106.30 level.

During the previous Asian trading session, we saw that the dollar did not have the strength to break through the 106.30 level, and a new bearish consolidation started and fell to the 105.90 level. We could soon retest yesterday’s support level.

Increased bearish pressure could influence us to see a breakout below and the formation of a new low. Potential lower targets are 105.70 and 105.60 levels.

106.30 is the level to watch for a bullish option

For a bullish option, we need a positive consolidation and a move above the 106.20 level. Then, we should hold up there and wait for a new impulse that would trigger a continuation of the recovery to the bullish side.

EMA50 moving average could be a problem for us at the 106.30 level. Potential higher targets are 106.40 and 106.50 levels. It would also be very important if we closed the gap from the opening of the market on Thursday.

Today, only economic news from the US market dominates. We’ll list them all: Average Hourly Earnings, Nonfarm Payrolls, Unemployment Rate, Services PMI, ISM Non-Manufacturing PMI and ISM Non-Manufacturing Prices. High volatility in the dollar market is very possible.

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