The dollar index retreats to the 103.30 level of support
- The previous week was very bearish for the dollar index.
Dollar index chart analysis
The previous week was very bearish for the dollar index. Moving around the 104.30 level, the dollar retreated to the 103.30 level on Thursday. Then on Friday, we saw a recovery that continued during this morning’s Asian session up to 103.70 levels. There the dollar encounters resistance and begins to pull back to the support zone at the 103.30 level. Increased pressure at this level could create a breakout below, making a new June lower low. Potential lower targets are 103.20 and 103.10 levels.
We need a new positive consolidation and a move up to the 103.50 level for a bullish option. We could console ourselves there before starting further recovery. Then we look at the previous high at the 103.70 level as the next target we need to break if we want to see the dollar not level anymore. Potential higher targets are 103.80 and 103.90 levels.
This week there is a lot of economic news that could affect the movement of the dollar, the most important of which is the FED and the future level of the interest rate, as well as the level of inflation in the US.