The dollar is recovering after falling to 101.20
- During the Asian trading session, the dollar index recovered after retreating to 101.20.
Dollar index chart analysis
During the Asian trading session, the dollar index recovered after retreating to 101.20. We are now very close to reaching the 101.60 level. The next important target is the 101.80 level, the additional resistance in the EMA50 moving average. If we managed to break above and hold above, we would have a good chance of climbing to the 102.00 level. The seven-day resistance of the dollar index is at the 102.20 level. We need a negative consolidation and pullback to this morning’s support level for a bearish option. A drop below would be a sign of bearish continuation. Potential lower targets are 101.80 and 101.60 levels. Today in the US session, we will have three very important reports. The first is Building Permits measure the change in the number of new building permits issued by the government. The second is Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. The third is New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. These three events can increase the volatility of the dollar index and all USD pairs.
