The dollar index returned above the 104.40 level on Friday
- On Thursday, the dollar index fell to a new weekly low of 103.17.
Dollar index chart analysis
On Thursday, the dollar index fell to a new weekly low of 103.17. This was followed by a positive consolidation and return above the 103.40 level, and thus, we closed the bearish gap at the start of the market opening on Thursday morning. The dollar continued to grow for the rest of the day, gaining level by level.
At the end of the day, the index rose to 104.00 levels. During this morning’s Asian session, the dollar consolidated around that level, and we soon saw a new bullish consolidation and a break above 104.20. We didn’t stop there either but continued up to the 104.40 level, forming a new weekly high.
The dollar is in a bullish surge above 104.00; is there any strength to 105.00?
We are still in a strong bullish rush, and the potential higher targets are 104.60 and 104.80. We first need a new negative consolidation and pullback to the 104.20 level for a bearish option. Failure to hold there will push us down to the 104.00 level. The new pressure could have a negative effect and send the dollar index to a new daily low and thus confirm the pressure on the American currency. Potential lower targets are 103.80 and 103.60 levels.
Fed Chairman Jerome Powell will address the US session today. His statement on future monetary policy, inflation and interest rates will determine the next trend of the dollar index and shake the market during that presentation. Next week, we expect a smaller volume of economic news due to the Easter holidays next weekend.
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