The dollar index starts Monday at the 106.50 level

Dollar index chart analysis

During the Asian trading session, the dollar index slightly retreated from the 106.60 level. The pullback took the dollar down to the 106.40 level, and now we find some support here and stop the pullback.

If we manage to stay above, we could initiate a new bullish consolidation and see the dollar index at a higher level. Potential higher targets are 106.80 and 106.90 levels. This would allow us to break above last week’s high and strengthen the bullish position.

We need a negative consolidation and pullback

We need a negative consolidation and pullback to the 106.30 level for a bearish option. Thus, we would form today’s new low, which could influence us to stay low and put pressure on that level. Additional support for the dollar in that zone is the EMA50 moving average. Potential lower targets are 106.20 and 106.10 levels.

Reviewing economic news this week, news from the US market will continue to dominate. In this way, we can expect the greatest impact of volatility on the movement of the dollar index.

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