Dollar index in retreat after EBC interest rate hike

Yesterday, the dollar index fell by 130 points from 103.30 to 102.00. 

Dollar index chart analysis

Yesterday, the dollar index fell by 130 points from 103.30 to 102.00. The increase in the interest rate by the ECB and leaving the interest rate at the same level by the FED led to the fall of the dollar to a new one-month low. 

During the Asian session, the dollar was calm, consolidating in the 102.10-102.30 range. We remained in that range in the EU session and continued with the lateral consolidation. We need a positive consolidation and a break above the 102.30 level for a bullish option. Then we need to hold up there in order to consolidate again and start a new bullish impulse and dollar recovery. Potential higher targets are 102.40 and 102.50 levels.

We need a negative consolidation and pullback below the 102.00 support level for a bearish option. After that, the dollar would continue to slide and form a new low. Potential lower targets are 101.90 and 101.80 levels.

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