The dollar index remains under pressure on Monday at 102,70
- On Friday, the dollar index dropped to 102.35.
Dollar index chart analysis
On Friday, the dollar index dropped to 102.35. With that fall, we returned to the position from January. We remained above that level on Friday and returned to 102.75, where we closed the previous trading week. During the Asian trading session, the index remained stable and moved in the 102.65-102.75 range.
We expect to see a more concrete step in the US session that could show the future dollar trend. By moving above 102.80, we have the opportunity to initiate a bullish consolidation and test the EMA50 in the zone around the 102.85 level. By breaking above, the dollar would significantly escape from the uncomfortable zone and have the opportunity for a further war at higher levels. Potential higher targets are 103.00 and 103.20 levels.
The dollar is calm on Monday
It could well shake up the dollar index and increase market volatility. We need a negative consolidation and pullback of the index below the 102.60 level for a bearish option. After that, we lean again to the bearish side and form a new daily low. This confirms that the dollar does not have the strength to recover, and we will see a retreat. Potential lower targets are 102.50 and 102.40 levels.
Tomorrow morning, data on German inflation will be released. Then, half an hour before the opening of the US market, data on US inflation will be published. Inflation is expected to remain at the same level as a month ago. On Wednesday, the British will announce their GDP for January. For Thursday, we highlight the PPI report, Retail Sales, and Initial Jobless claims.
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