The dollar index is under pressure below the 105.80 level

Dollar index chart analysis

The dollar index fell into some consolidation after rising to 106.13 levels last week. This week’s movement is in the 105.42-106.00 range. We have seen a bearish consolidation within this range in the last two days. Pressure has increased because we are now below the EMA200 moving average and the weekly open price. Also, a lower high was formed this morning at 105.80 compared to the day before, and this could be a confirmation for us to continue on the bearish side.

Potential lower targets are 105.50 and 105.40 levels. In the zone of 105.40, we will test the previous low of this week, but the chances of seeing a break below to a new low are increasing. Last week’s low was at the 105.37 level.

The dollar index is under pressure EMA200, are we expecting a continuation on the bearish side?

For a bullish option, the dollar index would first have to return above the EMA200 and 105.80 levels. We would be within reach to test the weekly open price. The impulse above pushes us to the positive side and facilitates our position for further recovery. Potential higher targets are 105.90 and 106.00 levels.

Today’s US session is full of economic news. First, we have ADP Nonfarm Employment Change, then Initial Jobless Claims, S&P Global Services PMI, ISM Non-Manufacturing PMI, ISM Non-Manufacturing Prices, Crude Oil Inventories, and finally, tonight’s FOMC Meeting Minutes. A bunch of equally important news for the dollar index before tomorrow’s United States holiday – Independence Day.

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