Dollar index falls below 104.00 and is on its way to 103.00

• The dollar index made a big retreat yesterday from 104.40 to 103.50 level. 

Dollar index chart analysis

The dollar index made a big retreat yesterday from 104.40 to 103.50 level. The main reason might be the Manufacturing Purchasing Managers’ Index report. The results were worse than expected and showed a slowdown in the market. This was interpreted as bad news, and the dollar index collapsed. We are now at the 103.40 level, and the pressure is still present on the chart.

Additional instability could be introduced by the following reports at the beginning of the US session: the NFP report and the unemployment rate. Potential lower targets are 103.20 and 103.00 levels.