The dollar index could soon test the 102.00 support level
- Last Friday, we saw a big pullback in the dollar index from 103.20 to 102.20.
Dollar index chart analysis
Last Friday, we saw a big pullback in the dollar index from 103.20 to 102.20. The fall of the dollar stopped there, which led to a minor recovery to the 102.50 level. We then see another pullback, but this time to 102.30, where we get new support and form a higher low.
We now need a positive consolidation and a move above 102.50 to trigger a bullish recovery. Potential higher targets are 102.60 and 102.70 levels. We need a negative consolidation and a retest of 102.20 for a bearish option, the previous low. A break below would push the dollar to form a new July low. Potential lower targets are 102.10 and 102.00 levels.
Of the important news for the dollar index this week, we will single out the following: on Wednesday, we have news on US inflation, monthly and yearly, and on Thursday, we have Initial Jobless Claims and the PPI report. The inflation report could influence the Fed’s future interest rate and the continuation of monetary policy.
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