The dollar index could recover next week above 103,60
- The first part of this week was spent in retreating the dollar index to 102.46 levels.
Dollar index chart analysis
The first part of this week was spent in retreating the dollar index to 102.46 levels. The fall stopped at that level, and the dollar started with a bullish consolidation up to 103.60. We formed this week’s high, and today, we are moving in the 103.30-103.50 range. We are getting closer to the upper resistance, which would produce a break above and form a new high for the dollar.
It is also positive that we would get support in the EMA50 moving average, strengthening the bullish option. Potential higher targets are 103.80 and 104.00 levels. We need a break below 103.30 today’s support level for a bearish option. After that, the dollar would be under pressure to continue its retreat and form a daily low. Potential lower targets are 103.00 and 102.80 levels.
Economic news for the coming week
The economic news of the next week will be dominated mostly by the US market. Based on this, we can expect volatility on the dollar index chart. Nothing is interesting from the news on Monday, and the important news starts on Tuesday. The RBA meeting and the decision on the future interest rate await us early in the morning. Expectations are that the interest rate will remain at the same level as last time, at 4.35%.
After that comes a bunch of important news from the US market: Services PMI, ISM Non-Manufacturing PMI, and JOLTs Job Openings. Wednesday brings us ADP Nonfarm Employment Change, Crude Oil Inventories and the Bank of Canada’s decision on its future interest rate.
It is expected to remain at the same level as before at 5.00%. Mixed Friday with news from all three sessions: first Japanese GDP, then German CPi and finally NFP and Unemployment rate.