The dollar index is struggling with 106.00 support on Friday
On Thursday, we saw a retreat of the dollar index to the weekly low at the 105.74 level.
Dollar index chart analysis
On Thursday, we saw a retreat of the dollar index to the weekly low at the 105.74 level. After that, the index quickly consolidated and started a recovery, returning above the $106.00 level. With that, we are again on the positive side because we are above the weekly open price. During this morning’s Asian trading session, we climbed up to the 106.35 level, where we formed a daily high.
There, the dollar encounters resistance and begins to retreat again to test the 106.00 level. For now, that level manages to support us, and it is possible that we will see a new positive consolidation and growth above the 106.20 level. Potential higher targets are 106.30 and 106.40 levels. This week’s high is at the 106.50 level.
We have been hovering around the 106.00 level all week, will Friday decide the future trend?
We need a drop below the 106.00 weekly open price for a bearish option. With that, we move again to the bearish side and look towards yesterday’s low. Potential lower targets are 105.90 and 105.80 levels. Additional support for the dollar index is the EMA200 moving average at the 105.63 level.
We have no very important economic news in the EU and US sessions today. Among the more important news in the Asian session, we single out Japanese inflation, which was in line with forecasts at 2.7%. The coming week will be dominated by economic news from the US market. We will highlight the following: Thursday’s US GDP and Initial Jobs Claims, Friday’s Core PCE Price Index and the Bank of Japan and its interest rate.
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