The dollar index is on the test at the 105.00 level

Dollar index chart analysis

During this morning’s Asian trading session, the dollar index stabilized in the 104.85-105.00 range. It remains in the bearish zone and is under pressure to slide to a new July low. While this week’s economic news is relatively sparse, it’s important to remember that global events could still have a significant impact on the dollar index.

For a bearish option, we need momentum below support at 104.85. This moves us to a new weekly low, which confirms the continuation to the bearish side. Potential lower targets are 104.70 and 104.60 levels. We are still far from the June support at 103.99, but we do not rule out another descent into that zone.

Calm dollar at the start of Monday, what awaits us in the rest of the week?

The dollar index must first move above the 105.00 level for a bullish option. It will then test the EMA 50 moving average there. If we move above, we will get the support of the EMA 50 and strengthen the bullish momentum for further recovery on the bullish side. Potential higher targets are the 105.20 and 105.40 levels. Greater resistance awaits us in the 105.40 zone in the EMA 200 moving average.

We have no news today until tomorrow, when Federal Reserve Chair Jerome Powell will give a speech. On Wednesday in the Asian session, the Reserve Bank of New Zealand will announce the future interest rate. Economists predict that it will remain at the same level as in Ranje. On Thursday, at the start of the EU session, we have data on British GDP and German inflation. The US inflation and initial Jobless Claims will be published in the afternoon of the US session. For Friday, we highlight the US Producer Price Index.

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