The dollar dominated this week against other major currencies. Yesterday we saw the formation of a new higher high at the 103.62 level. The last time the dollar was in that spot was two months ago. During the Asian trading session, we saw the beginning of a bearish consolidation that continued later in the EU session, and the index fell to the 103.24 level. Based on today’s picture, we can expect a continuation of the pullback and a test of the 103.00 level.
The dollar could find support there and start further growth from there. Potential higher targets are 103.80 and 104.00 levels. We need a negative consolidation and a drop below the 103.00 support level for a bearish option. Potential lower targets are 102.80 and 102.60 levels.
In the US session, we are waiting for the report of Jerome Powell, Federal Reserve Chair, and his view of the current US economy, future interest rates, and the trend of inflation. His words could shake the dollar index chart.
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