Dollar Index: Pressure Felt Below 104.20 Level

The beginning of this week was very positive for the dollar index, as we saw a jump to 104.60 levels.

Dollar index chart analysis

The beginning of this week was very positive for the dollar index, as we saw a jump to 104.60 levels. On Tuesday, the dollar reaches that level once again but fails to break above it and stops there. With reduced bullish momentum, we see the beginning of bearish consolidation, which brought us down to 104.20 levels by the end of the day.

During the previous Asian session, the traded dollar index remained under pressure below the 104.20 level and moved in the 104.00-104.20 range. It remains above the weekly open price, instilling optimism that we could see a new bullish consolidation. We again need to move above 104.20 to break out of this uncomfortable range. Potential higher targets are 104.30 and 104.40 levels.

The dollar index is under pressure at 104.00; is there a hint of a fall below?

We need to see the dollar pull back below the support at the 104.00 level for a bearish option. We had a small gap at the opening this week, and a drop to 103.90 would cover that. There, we would be under pressure to start a further pullback in search of a new support level. Potential lower targets are 103.80 and 103.70 levels. Additional support is EMA200 at around 103.80 levels.

Today’s economic news should not majorly impact the dollar index. In the EU session, German industrial production showed a slowdown and a decline. In the afternoon, in the US session, from the important news, we highlight Crude Oil Inventories and 10-year Note Auction, and towards the end of the market, we will have FOMC Member Bowman Speaks.

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