The dollar index rose to 103.50 at the start of Asia session

• At the start of this morning’s Asian session, the dollar index rose to 103.50 and formed a ten-day high there. 

Dollar index chart analysis

At the start of this morning’s Asian session, the dollar index rose to 103.50 and formed a ten-day high there. After that, the index retreats, slipping below the 103.40 level. It is very possible that we will soon test the EMA50 moving average at the 103.30 level. There, we see a certain zone that resisted on Friday in the US session.

Falling below that zone will increase the pressure on the dollar to begin a further retreat. Potential lower targets are 103.20 and 103.10 levels. In the zone around 103.20, we encounter a possible higher support in the EMA200 moving average. If that support fails to keep us above, the dollar could test the 103.00 level.

Does the dollar go to 103.00 before the Fed rate decision?

We need a new positive consolidation and a return to the 103.50 level for a bullish option. This brings us back to testing that level. With a break above, we go to a new daily high and thus establish a new bullish consolidation. After that, we will have an opportunity to continue on the bullish side. Potential higher targets are the 103.60 and 103.70 levels.

This week, we have a bunch of important banking news from all the markets. Tomorrow, during the Asian session, the Bank of Japan and the Reserve Bank of Australia will announce future interest rate decisions. Forecasts for the BoJ are that it could raise the interest rate to 0.00% and thus end the era of negative interest rates. On Wednesday, the main star of the week is the Fed’s decision on its interest rate. Economists forecast that we will see it at the same level as before, at 5.50%.