The dollar index has been moving steadily this week
- The dollar index moved in a lateral consolidation this week in the 101.60-101.80 range
Dollar index chart analysis
The dollar index moved in a lateral consolidation this week in the 101.60-101.80 range. On Tuesday, we had one short-term jump to the 101.90 level but quickly returned to the previous range of movement. During this morning’s Asian trading session, the index gained new support at the 101.60 level. From there, we initiated a bullish consolidation and rose to 101.70 levels.
The weekly open price is in the middle of this lateral channel, and it is very important which side the dollar index will be on. Today, we expect to see the index above 101.80 and the formation of a new daily high. If we manage to move above 101.80, we will have an opportunity to test yesterday’s high at 101.90. Potential higher targets are 102.00 and 102.10 levels.
The index continues its sideways movement on Wednesday, supported by the EMA 200 moving average
For a bearish option, we need a negative consolidation below the 101.50 level. With that step, we fall below the EMA 200 moving average and form a new daily low. This will strengthen the bearish momentum, which could continue to push the dollar index to lower levels. Potential lower targets are the 101.40 and 101.30 levels.
Among the important news for the dollar index, we single out the JOLTs Job Openings report, which will be published in the US session. The Bank of Canada will announce the future interest rate fifteen minutes before that. Economists’ forecasts are that the bank could reduce the interest rate from 4.50% to 4.25%. This move by the Bank of Canada could encourage the Fed to do the same at its next meeting. API Weekly Crude Oil Stock data will be published towards the end of the US session.
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