The dollar index recovered this morning to the 103.50 level

Dollar index chart analysis

During the previous Asian trading session, the dollar index rose to 103.48, forming a weekly high there. After that, we stop there and return to the 103.30 support level. The dollar is still under pressure because we are in that zone, and it could soon break below and form a new daily low.

Potential lower targets are 103.20 and 103.10 levels. In the zone around 103.20 levels, we encounter the EMA50 and EMA200 moving averages. It could easily happen that we get their support and stop the bearish option in that zone. We cannot rule out testing the 103.00 level until this week’s low at the 102.63 level.

Did the dollar index strengthen to return above 104.00, or will it continue on the bearish side?

We need a positive consolidation and a breakthrough of this morning’s resistance at the 103.50 level for a bullish option. If we manage to move above, we will go to a new weekly high, thereby confirming the bullish momentum. After that, we will have a better loss position for further recovery. Potential higher targets are 103.60 and 103.70 levels.

Today’s news from the US market includes the NY Empire State Manufacturing Index, Industrial Production annual and monthly, Manufacturing Production, Michigan Consumer Expectations, Michigan 1-year Inflation Expectations and Michigan 5-year Inflation Expectations.

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