The dollar index remains under 103,50 level on Monday
- During the Asian trading session, the dollar index recovered slightly after supporting at the 103.10 level.
Dollar index chart analysis
During the Asian trading session, the dollar index recovered slightly after supporting at the 103.10 level. Today’s high for now is the 103.50 level, where we have an open, and we remain below, descending to support at the 103.30 level. Additional pressure in that zone creates the EMA50 moving average, and we need a break above it and the 103.50 level if we plan to move to the bullish side.
Should we manage to move to 103.60, we would have more room to consolidate above the EMA50 before continuing further recovery. Potential higher targets are 103.80 and 104.00 levels.
The bearish scenario is still below the EMA50
We need a negative consolidation and pullback to the first support at the 103.10 level for a bearish option. A drop below leads to the formation of a new weekly low, and thus, we get a confirmation of the bearish presence. After that, we wait to test the 103.00 level, and if it does not hold, we continue to last week’s support zone. Potential lower targets are 102.80 and 102.60 levels.
Today, we have no important news from the market, but that’s why we can expect increased dollar volatility from tomorrow. The RBA and the Bank of Canada will announce future interest rates this week, which are expected to remain at the same level as before. We should be cautious for the second part of the week because of news on Japanese GDP, German CPI, US unemployment rate and NFP report.