The dollar index is at a crucial test at the 103.00 level

• The dollar index was in a mild bullish trend this week with the support of the EMA50 moving average. 

Dollar index chart analysis

The dollar index was in a mild bullish trend this week with the support of the EMA50 moving average. Yesterday we saw a lot of turbulence on the chart, a dip and a bounce. We can say that support at the 103.00 level is very important with EMA50 moving average. With a break below, we could see a stronger decline in the dollar.

The next series of support zones is the 102.70-102.80 range; from that place, we can expect a new bullish impulse. If there is a break below this zone, the potential lower targets are 102.60 and 102.50 levels. The previous low is at the 102.40 level.

We need a positive consolidation and a move to the 103.10 level for a bullish option. Thus, we would be stationed above the EMA50 moving average, which should positively affect the dollar index. Potential higher targets are 103.20 and 103.30 levels.

Today we have three very important news from the US economy: Average Hourly Earnings, NFP report and unemployment rate. These three reports will definitely affect the volatility and trend of the dollar.