The dollar index started Monday above the 104.00 level

• The dollar index continues to pull back and test the 104.00 level. 

Dollar index chart analysis

The dollar index continues to pull back and test the 104.00 level. For now, we are still holding above that level, and we need a positive consolidation in order to start a new growth of the index. We would once again find ourselves in last week’s resistance zone around 104.45 levels. A break above would form a new high and thus confirm a bullish option. Potential higher targets are 104.60 and 104.80 levels.

We need a negative consolidation and a drop below the 104.00 level for a bearish option. This would trigger the withdrawal of the dollar to lower support levels. Potential lower targets are 103.80 and 103.60 levels. We could get additional support in the EMA50 moving average in the zone around 103.60 levels.

This week is full of important economic news. Among the more important ones, we can single out the US GDP, EUR CPI, China Manufacturing PMI, US NFP report and Unemployment rate. Based on these reports, we can also expect an impact on the dollar index.