The dollar index has a new opportunity to start a recovery
This morning, the dollar index fell to a new annual low of 100.53Dollar index chart analysis
This morning, the dollar index fell to a new annual low of 100.53. It quickly consolidated at that level and started a recovery. We are back above the 100,070 level on the positive side above the daily open price. That pushed the index, and now we are at the 100.78 level. We expect a move above 100.80 and momentum to continue to the 101.00 level.
In that zone, the EMA 50 moving average awaits us, and we hope for its support to continue on the bullish side. We currently have the initial momentum to initiate further bullish consolidation. Potential higher targets are the 101.20 and 101.40 levels. The EMA 200 moving average is high in the 101.80 zone.
The index slipped this morning to a new low and extended the bearish picture
For a bearish option, we need a negative consolidation and a pullback below the 100.60 level first. With that step, we fall below the daily open price and increase the pressure on the dollar index. After that, we expect a descent to the 100.50 level and the formation of a new daily low. This will only push it further down and back into the previous bearish channel. Potential lower targets are 100.40 and 100.20 levels.
From today’s news, we highlight Durable Goods Orders, which will be published half an hour after the start of the US session. Expectations are that the results could be better than the previous ones. The previous ones showed a decrease in orders by -6.6%, while today, a growth of 4.0% is expected. The higher-than-expected data should have a positive impact on the dollar index. Tomorrow, we have German GPD for the second quarter of this year and US CB Consumer Confidence.
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