Connect with us

Hi, what are you looking for?

Trading Secrets

Dollar index: Dollar breakout 105.00 resistance up to 105.45

Dollar index: Dollar breakout 105.00 resistance up to 105.45

The first part of this week was very bearish for the dollar index.

Dollar index chart analysis

The first part of this week was very bearish for the dollar index. Yesterday, we saw a strong bullish impulse and a dollar jump to 105.43. Yesterday, the ECB raised its interest rate to 4.50%, which was interpreted as the euro’s weakness on the impact of current inflation. Additional stimulus for the index was positive economic news from the US market.

During the Asian trading session, we encountered resistance, and the dollar began to retreat to the 105.20 level. We are currently finding support at that level and are maintaining ourselves in that zone. This could produce another bullish consolidation and a return to yesterday’s resistance zone. We could expect to see both a breakout above and a continuation into the formation of a new high. Potential higher targets are 105.50 and 105.60 levels.

We need a break below the 105.20 support level for a bearish option. After that, we would go down to the 105.00 support level. The passage below could begin a deeper pullback. Potential lower targets are 104.80 and 104.60 levels. Additional support is in the EMA50 moving average around 104.80 levels.

Next week, we have the Fed’s future interest rate report. Depending on that report, the movement of the dollar index will also depend. Other news are EU CPI, GBP CPI, NZD GDP and CHF interest rate decision.

The post Dollar index: Dollar breakout 105.00 resistance up to 105.45 appeared first on FinanceBrokerage.

Enter your email address below and we’ll send you our best practices.

    You can unsubscribe at any time. Redstatefoundation respects your privacy and strives to be transparent about our data collection practices. Please read our Privacy Policy and Terms of Use.

    You May Also Like

    Trading Life

    Laura Wong Hon Chan is an interest rate options trader, who is currently a director at Bank of America Merrill Lynch in New York....

    Trading Secrets

    In this episode of StockCharts TV‘s The MEM Edge, Mary Ellen reviews what’s driving the markets higher and what to be on the lookout...

    Trading Secrets

    SPX Monitoring Purposes: Long SPX on 10/10/22 at 3612.39; sold 12/13/22 at 3669.91 = gain 1.59%. Monitoring Purposes GOLD: Long GDX on 10/9/20 at...

    Trading Secrets

    I don’t like it when parts of a puzzle don’t match. You just don’t get a clear picture. As participants in the markets, we...