The dollar index, after one year, again below the 100.00
Last Friday, the dollar index fell below the EMA50 moving average and thus started this week’s retreat.
Dollar index chart analysis
Last Friday, the dollar index fell below the EMA50 moving average and thus started this week’s retreat. From 103.10 levels, the dollar fell this morning to 99.57 levels. At the beginning of the EU session, the index manages to consolidate and initiate a short recovery. For now, we need a break above the 100.00 level if we want to see a continuation of the dollar’s recovery. Potential higher targets are 100.50 and 101.00 levels.
We need a negative consolidation and a new visit to the previous low for a bearish option. I then push the breakout below to form a new low and start a bearish decline. Potential lower targets are 99.50 and 99.00 levels.
The major economic news affecting the US dollar this week was the report that inflation eased to 3.0%. This kind of news tells us that the FED is on the right track to lower inflation below 2.0% and that there should be no interest rate hike at the next FED meeting. It seems that the interest rate’s current size is sufficient to affect inflation positively.
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