The dollar index is holding above the support zone
- The dollar continues to struggle to hold above the 101.00 level.
Dollar index chart analysis
The dollar continues to struggle to hold above the 101.00 level. From the beginning of the Asian session until now, the movement took place in the range of 101.05-101.20. At one point, we had a jump to 101.25, but we quickly returned to the previous channel of movement.
For a bullish option, we need a break above 101.20 and try to hold above it. Then we need a bullish impulse and consolidation that would push us up to the 101.30 level. Potential higher targets are 101.40 and 101.50 levels. We need a drop to the 101.05 support level for a bearish option.
A break below could lead to a drop below the 101.00 level, increasing pressure on the dollar. Potential lower targets are 100.90 and 100.80 levels. On Wednesday, we are expecting news about US inflation, which could increase the dollar index’s volatility.