The dollar index in a new attempt above the 105.00 level

The dollar index in a new attempt above the 105.00 level

On Thursday, the dollar index again moved above the 105.00 level. 

Dollar index chart analysis 

On Thursday, the dollar index again moved above the 105.00 level. During this morning’s Asian trading session, we only managed to climb up to 105.11 levels. There, we encounter resistance and initiate a bearish consolidation up to 104.93 levels. If we go down a little more, we will be able to test the EMA200 moving average at the 104.85 level.

At that level, the index could gain new support and start a positive consolidation. After the tag, we expect to climb to the new weekly low and confirm the bullish trend’s continuation. Potential higher targets are 105.20 and 105.40 levels. 

Does the dollar have enough strength to start a bigger recovery?

Considering a bearish option, a pullback of the dollar index below 104.80 and the EMA200 moving average could signal a shift in the market. This would lead us towards the bearish side, potentially resulting in the formation of a new low and confirming the bearish consolidation. In this scenario, potential lower targets are 104.60 and 104.40 levels, indicating a downward trend.

From today’s economic news, we single out the German GPD. The data were in line with the forecast, which could potentially support the dollar index. Later in the US session, we have Durable Goods Orders, which could also influence the dollar’s performance. Next week, we have a lot less economic news than this week. Monday is the United Kingdom – Bank Holiday and United States – Memorial Day. Thursday’s headline news is the US GBP and Initial Jobless Claims, which could have significant implications for the dollar index.

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