The dollar index fell to a new annual low on Wednesday

Dollar index chart analysis

On Wednesday evening, we saw the creation of a new low dollar index at the 100.92 level. After eight months, the dollar again fell below the 101.00 level. We stabilized this time and saw the initiation of bullish consolidation yesterday. The index climbed to 101.62 and jumped over the EMA 50 moving average.

During this morning’s Asian trading session, the dollar made another retreat, this time to the 101.20 level. There, it gets new support and forms a higher low compared to the previous one. We are now at 101.42 and will try to get the EMA 50 moving average support again. This time, it would mean more concretely, and we could hope for the initiation of bullish consolidation and the recovery of the dollar index. Potential higher targets are the 101.80 and 102.00 levels.

https://www.tradingview.com/x/2IOKo8Pc/

The index is positive for the second day in a row and could continue its recovery next week

For a bearish option, we need bearish consolidation moves and a drop below the 101.20 level. This will form a new daily low and confirm the increase in bearish momentum. After that, we have to watch the dollar retreat to lower levels. Potential lower targets are 101.00 and 100.80 levels.

From the news today, we single out Japanese core inflation, which rose from 2.6% to 2.7%. There is no significant news in the EU session. Later in the US session, we have the New Home Sales report, and Federal Reserve Chair Jerome Powell is to speak. During his speech, we expect increased volatility of the dollar index. Powell will talk about the state of the US economy and the Fed’s future interest rate moves.

The post The dollar index fell to a new annual low on Wednesday appeared first on FinanceBrokerage.