The dollar index is under slight pressure at 104.80 level

Dollar index chart analysis

The dollar index is retreating from this week’s high formed yesterday at 105.18. Yesterday’s strong bearish consolidation brought the dollar down to 104.63 levels. After that, we sing to stabilize there and start the recovery. During this morning’s Asian trading session, the index recovered to 104.90, where it is encountering new resistance.

Now, we see a pullback from that level and go down to 104.75. We test the weekly open price and the EMA200 moving average support here. There is a better chance of seeing an impulse down to a new daily low and testing yesterday’s low. Potential lower targets are 104.60 and 104.50 levels.

Can the dollar index hold above the weekly open price?

If the dollar index manages to turn the situation in its favor, it presents a promising opportunity for a bullish recovery. A break above 104.90 leads to the formation of a new daily high. This could incite bullish consolidation and a return to the 105.00 level. Potential higher targets are 105.10 and 105.20 levels.

Among today’s important news, we highlight the Eurozone CPI. The data, which showed a slight increase in inflation from 2.4% to 2.6%, had a significant impact on the euro as it was followed by an interest rate cut by the ECB. In the afternoon, in the US session, we have the Core PCE Price Index, Chicago Purchasing Managers Index and Canadian GDP. During the publication of this news, we can expect increased volatility of all USD pairs.

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