The dollar index above 105.70 level at the end of the week
The dollar index is in a bullish run after the Fed’s announcement that it will leave the interest rate at the same level.
Dollar index chart analysis
The dollar index is in a bullish run after the Fed’s announcement that it will leave the interest rate at the same level. From 104.20, a bullish consolidation was initiated up to 105.70, a new weekly high. Now, we are looking at a slight pullback to 105.60, while more serious support is slightly lower at 105.40. If the support does not last, the next step is a drop from the daily open price to the 105.20 level.
This is where we are approaching the EMA50 moving average, which could slow down the further pullback. Potential lower targets are 105.00 and 104.80 levels. We will have additional support in the EMA200 moving average in the zone of 104.80 levels.
The dollar is at a new weekly high, is there any strength for the 105.80 level?
We need a positive consolidation and stay above the 105.60 level for a bullish option. If we manage to achieve this, a new test of the previous high will follow. With a bullish impulse, we would have jumped that level and climbed to the new June value. Potential higher targets are 105.80 and 106.00 levels.
From important economic news, we issue the Fed Monetary Policy Report in the afternoon in the US session. This morning, the Bank of Japan announced its future interest rate. The data showed that the interest rate will remain at the same level as before at 0.10%. Next week, we will also have a lot of important news that could shake up the charts. Highlights: RBA and interest rate decision on Tuesday, Eurozone CPI. On Wednesday UK CPI, Thursday NZD GDP, Swiss National Bank and BoE will announce their interest rates. We have quite an interesting trading week ahead of us.
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