The dollar index recovers to 102.50 from last week’s 102.00
- This morning we saw a continuation of the dollar index’s recovery that started on Friday.
Dollar index chart analysis
This morning we saw a continuation of the dollar index’s recovery that started on Friday. During the Asian session, we managed to get support at the 102.30 level. Then we see a bullish impulse and a jump to the 102.55 level. We are currently stuck at that level, and if today’s consolidation continues, we could see a continuation of the dollar’s recovery. Potential higher targets are 102.60 and 102.70 levels.
Last week was very bad for the dollar as we saw a big drop and pullback from 103.70 to 102.00. This week we could expect a correction and a slight recovery of the American currency. On two occasions this week, we will have testimony from Jerome Powell, chairman of the Fed. In his statements, we will hear about the central bank’s potential future steps about the interest rate level.
The BoE and the SNB could cause additional instability on the market because their moves this week to increase the interest rate could greatly affect the future movement of both, the dollar index and other currencies.
