Connect with us

Hi, what are you looking for?

Economy

The dollar index falls below 105.00 ahead of US CPI data

The dollar index falls below 105.00 ahead of US CPI data

Today, we are looking at the continued pullback of the dollar index below the 105.00 level. 

Dollar index chart analysis

Today, we are looking at the continued pullback of the dollar index below the 105.00 level. Yesterday, we saw the first drop below 105.00, forming a weekly low of 104.96. After that, we had an attempt at stabilization that lasted until this morning’s Asian session. A new bearish consolidation was initiated, and we broke below the previous low.

This leads us to the formation of a new weekly low at the 104.80 level. For now, we are holding above that level and moving up to 104.88. A return above 104.95 would have to indicate that the dollar has bounced back, and we could see a continuation to the bullish side. Potential higher targets are 105.00 and 105.10 levels. The index could face higher resistance in the 105.10 zone, as this is where we encounter the EMA50 moving average.

The dollar is falling below the 105.00 level; should we hope for a new weekly low?

For a bearish option, the dollar index should test the 104.80 level of support. If pressure continues in that zone, we expect to see another bearish impulse and a drop to a lower value on the chart. Potential lower targets are 104.75 and 104.70 levels. The May low is still a little lower at the 104.52 level.

Today we expect very important news at the start of the US session, which is the US CPI. Halfway after the opening of the US session, data on core inflation and total inflation will be published. At the annual level, inflation is expected to decrease by 0.1%. Data in line with forecasts and higher should strengthen the dollar, because it tells us that the Fed will keep the interest rate at the same level. If the inflation data is below expectations, it tells us that the Fed could lower the interest rate at the next meeting. Therefore, the dollar index would continue to fall.

 

The post The dollar index falls below 105.00 ahead of US CPI data appeared first on FinanceBrokerage.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Enter Your Information Below To Receive Latest News, And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Visitors at embedded world Exhibition & Conference, Nuremberg, to discover how to unleash configurable, customisable, trainable chatbot for business performance improvement. SECO, a global...

    Editor's Pick

    In today’s fast-paced business landscape, compliance with regulations and standards is paramount. Failing to meet these requirements can result in hefty fines, damaged reputations,...

    Editor's Pick

    Internet of Things, or IoT, is no longer just about smart homes and wearable tech, it rather marks a profound new shift in the...

    Economy

    Bitcoin Investing Simplified: 11 Spot ETFs Approved In 2024 Quick Look: Spot Bitcoin ETFs: Approved by the SEC in January 2024, making BTC investments...

    Disclaimer: Financetimereport.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 Financetimereport.com