The dollar index managed to stabilize and start a recovery

[PocketOption]

The dollar index managed to stabilize and start a recovery

The dollar index managed to stabilize and start a recovery

• On Monday, at the beginning of the US session, the dollar index retreated to 102.16, forming a new August low. 

Dollar index chart analysis

On Monday, at the beginning of the US session, the dollar index retreated to 102.16, forming a new August low. After that, we saw more bullish consolidation moves and a return above the 102.60 level. There, we got new support from which the index started a bullish consolidation above the 103.00 level. This morning, we found support in the EMA 50 moving average, which reinforces our claims for a recovery.

We are also above the weekly open price on the positive side, which suggests more optimism. The daily high was formed at 103.40, and the chances of seeing a continuation to the bullish side are increasing. Potential higher targets are the 103.60 and 103.80 levels. The dollar index will have additional resistance in the 103.65 zone in the EMA 200 moving average.

 

We see a recovery from the weekly low, is there a strength index for a bigger recovery?

For a bearish option, we need a new pullback below the EMA 50 moving average and the 103.00 level. This will put pressure on the daily open price. If the bearish momentum continues, we expect to see the formation of a new daily low. Such a picture will strengthen the bearish scenario and the retreat of the dollar index. Potential lower targets are 102.80 and 102.60 levels.

From today’s economic news, we highlight Crude Oil Inventories and the 10-year Note Auction. On Thursday, we have the weekly report on Initial Jobless Claims and the 30-year Bond Auction. We have less economic news this week, but it’s crucial to remember that world events, such as geopolitical tensions or major policy changes, can significantly impact market movements. Staying informed about these events is key to understanding the full context of the market.

 

The post The dollar index managed to stabilize and start a recovery appeared first on FinanceBrokerage.

Source: The dollar index managed to stabilize and start a recovery