The dollar index with bullish consolidation rises to 101.00
- During this price week, the dollar index recovered from last week’s drop to 99.57.
Dollar index chart analysis
During this price week, the dollar index recovered from last week’s drop to 99.57. On Tuesday, we confirmed support at that level again and are starting the ongoing recovery. First, we make a break above the 100.00 level and get its support. Then, yesterday, we saw a strong bullish impulse to the 100.97 level.
We also managed to move above the EMA50 moving average and now have its support. During the Asian session, the dollar retreated to the 100.70 level, made a new strong bullish impulse, and rose to the 101.00 level. The bullish consolidation is still ongoing, and we will likely see a continuation to the bullish side. Potential higher targets are 101.20 and 101.40 levels.
We need a negative consolidation and a pullback to the 100.60 level for a bearish option. Then, we need a break below for further continuation to the bearish side. We would go back below the EMA50 moving average again, which would further increase the pressure on the dollar. Potential lower targets are 100.40 and 100.20 levels.