Dollar index: The dollar recorded a new high at 106.84
- On Wednesday, we saw a jump in the dollar index to 106.84 levels.
Dollar index chart analysis
On Wednesday, we saw a jump in the dollar index to 106.84 levels. The previous time we were in that zone was in November last year. The index encounters resistance at that level and makes a pullback to today’s support at the 105.65 level. Yesterday’s support at the 106.00 level did not hold, and we saw a breakout below. We are now looking at the price from the opening of this week’s market at 105.55 as the next support zone. Potential lower targets are 105.50 and 105.40 levels.
We need a positive consolidation and a return to the zone around the 106.00 level for a bullish option. Then we need a break above and try to hold above. After that, we could expect to see a continuation of the bullish scenario. Potential higher targets are 106.20 and 106.40 levels.
Next week, economic news will dominate the US market, the EU session will be without important news, while in the Asian session, we expect the RBNZ decision on the interest rate and the China Manufacturing Purchasing Managers Index. Among the more important US news, we highlight the following: Fed Chair Powell Speaks on Monday, Services PMI, NFP and Unemployment rate on Friday.
