Connect with us

Hi, what are you looking for?

Trading Secrets

The dollar index has been in a bullish trend since Thursday

The dollar index has been in a bullish trend since Thursday

Last Tuesday, the dollar index was above 105.00 for the first time this year.

Dollar index chart analysis

Last Tuesday, the dollar index was above 105.00 for the first time this year. After forming a high at 105.10, the index initiated a pullback first to support at the 104.70 level. We managed to hold above for a while on Wednesday, after which there was a strong bearish impulse and a drop to 103.91 on Thursday morning.

By the end of the week, we saw attempts by the dollar to start a recovery, and it succeeded by retesting the 104.70 level. We then move back down to 104.25, our new support. During the Asian trading session, we consolidated slightly bullish and tried to break above the 104.40 level. For now, we are below it, but we have the support of the EMA200 moving average, which could positively affect the dollar index.

Do we have the strength to see a stronger dollar bullish impulse?

Potential higher targets are 104.50 and 104.60 levels. We need a break below the 104.25 support level for a bearish option. With that move, we go to a new daily low and confirm that the dollar index is under bearish pressure. Potential lower targets are 104.10 and 104.00 levels. it is also possible to test last week’s low at 103.90 level.

This week is filled with economic news that could shake all currencies. On Wednesday, in the Asian session, the RBNZ will announce the future interest rate. Forecasts are that they will leave it at the same level. On the same day, but in the US session, we have US inflation, oil stocks and the FOMC meeting. Thursday will be marked by the ECB’s announcement of their interest rate, and no rate changes are expected here.

The post The dollar index has been in a bullish trend since Thursday 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 Secrets

    What is the marginal rate of substitution and its formula? Key Takeaways: Trade-offs and Satisfaction: MRS shows the trade-offs consumers are willing to make...

    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

    Maximizing Profits in Forex with the XMaster Formula Indicator Key Takeaways: XMaster Formula Indicator is a reliable and accurate tool for Forex traders to...