The dollar index is holding above 101.60 on Monday

Dollar index chart analysis

During the Asian trading session, the dollar index moved above the 101.60 level. The dollar continues to recover in the EU session and is now at the 101.80 level. The main target is reaching the 102.00 level again, which is last week’s previous high. If we succeed in that, then we need to maintain ourselves there to consolidate there and start further recovery. Potential higher targets are 102.20 and 102.40 levels.

We need a negative consolidation and pullback below the 101.60 level for a bearish option. After that, we would be able to look for support at the 101.40 level. A break below would mean a possible further weakening of the dollar and a move to lower support levels. Potential lower targets are 101.20 and 101.00 levels. Additional support for the dollar could be found in the EMA50 moving average at the 101.20 level.

This week will also be interesting with economic news. Today, we have EU CPI; Tuesday, the RBA interest rate and Manufacturing PMI for GBP, EUR, and USD; Thursday, the BOE and interest rate; and Friday, NFP report and US unemployment rate.

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