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The dollar index retreated from the 104.40 level on Monday

The dollar index continues its bullish rally to 105.80

The dollar index retreated from the 104.40 level on Monday

  • On Friday evening, the dollar index rose to 104.49, a new weekly high. 

Dollar index chart analysis

On Friday evening, the dollar index rose to 104.49, a new weekly high. During the previous Asian trading session, the index was slightly retreating to 104.30. And now we are under pressure in that zone, which could easily lead to a breakout below and a drop to a new daily low. This leads to increased bearish pressure and a continuation of the dollar’s decline.

Potential lower targets are 104.20 and 104.10 levels. The dollar index could get additional support at the 104.20 level in the EMA50 moving average. By falling below it, we could make an even deeper pullback to the EMA200, which is in the zone around 103.75 levels.

Dollar index chart analysis

104.40 resistance on Monday, are we going to a new daily low?

We need a positive consolidation and a return above the 104.40 level for a bullish option. Going above is the first step; we need to stay there. If we succeed in this, we can hope for further recovery of the dollar index. Potential higher targets are 104.50 and 104.60 levels.

The volume of economic news has been reduced this week due to the Easter holiday next weekend. Today we are highlighting the speech of President Christine Lagarde in the EU session, then in the afternoon in the US New Home Sales session.

Tomorrow in the Asian session, we have the basic inflation of the Bank of Japan, and later US Durable Goods orders and CB Consumer Confidence. Thursday will mark the news about the GDP for Great Britain and the US, and on Friday, the speech of the chairman of the FED, Jerome Powell, will be at the end.

 

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