The dollar index falls below the 103.50 level on Monday
During the Asian trading session, we saw a continuation of the dollar’s decline from last week.
Dollar index chart analysis
During the Asian trading session, we saw a continuation of the dollar’s decline from last week. The support at 103.80 was broken, and the index began to retreat further, forming a low at 103.46. For now, we are in the zone around the 103.50 level and trying to gain support at that level. If the pressure on the dollar continues, a break below is inevitable, and we will see the formation of a new low.
Potential lower targets are 103.40 and 103.20 levels. We need a positive consolidation and a dollar return above the 103.80 level for a bullish option. Then, it is necessary to maintain above that level and form a new bottom of the index there. If we succeed in this, we will have a new position to start a bullish consolidation. Potential higher targets are 104.00 and 104.20 levels. EMA50 moving average is in the zone around 104.60 levels.
Thanksgiving and the long US weekend
Thursday is Thanksgiving Day in the United States and is a public holiday, so the stock market will be closed that day and will be open for a limited time on Friday. A smaller volume of dollar trading is expected during the US session, while the rest of the EU and Asian sessions will be active.
This week will be filled with less economic news, but it will certainly not be boring on the market. We should pay attention to many reports from almost all central banks: FED, BoE, RBA, ECB, and BoC. Other important news are German GDP, US Existing Home Sales, US Core Durable Goods Orders, US Services PMI and US Initial Jobless Claims.
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