The dollar index is waiting for the FED at the 104.00 level

Dollar index chart analysis

Today, we are looking at the dollar index at a new weekly high at the 104.15 level. During this morning’s Asian session, we successfully held above 103.80 and initiated a bullish consolidation at the current level. Before the US session’s opening, the index slightly retreats to 104.10. We may see a test of the 104.00 level. A bigger pullback is smiling at us with a fall below, maybe even to the Asian low.

That could shake up the dollar index’s bullish plans. Potential lower targets are 103.70 and 103.60 levels. In the zone around 103.75, additional support is the EMA50 moving average, while the EMA200 is lower at the 103.45 level. For now, we are sticking to the bullish trend and rooting for a continuation of the bullish side.

Does the dollar index have the strength to stay above the 104.00 level?

We need a continuation of today’s bullish consolidation for a bullish option. By crossing above 104.15, we will reach a new weekly high and thus confirm the bullish dominance. Potential higher targets are the 104.20 and 104.30 levels. That jump would test the March resistance zone.

Tonight in the US session, we have important news for the dollar index: the Fed’s announcement on the future interest rate. The current interest rate is 5.50%, which is expected to remain at the same level after the report. The reason for that decision is that inflation is still high, which leads to a reduction in the interest rate.

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