Dollar index: The dollar returned to 102.00 this morning
- During the Asian trading session, the dollar index moved in the 101.60-101.80 range
Dollar index chart analysis
During the Asian trading session, the dollar index moved in the 101.60-101.80 range. At the beginning of the EU session, the dollar gets a bullish impulse and rises to the 102.00 level. After that, we see a pullback of the 101.80 level. It is possible that we could see a pullback to the 101.60 level and thus test today’s support level. The break below is the next step if we don’t get his support. Potential lower targets are 101.40 and 101.20 levels.
We need a new positive consolidation and a return to the 102.00 level for a bullish option. Then we need to break above and try to stay up there. With a new impulse, the dollar would start a continuation of the recovery. Potential higher targets are 102.20 and 102.40 levels.
On Wednesday, the FED raised the interest rate from 5.25% to 5.50%, and that news negatively impacted the index, lowering it to 100.50 levels. While the news about raising the ECB interest rate from 4.00% to 4.25% boosted the dollar and pushed it to this morning’s level. Additional support for the dollar is also leaving the BoJ and their interest rates at the same level at -0.10%.
