The dollar index on the trend line

7 Agu 2022

The trend line still supports the dollar. In the last pullback of the dollar, we see that the withdrawal stopped at the 61.8% Fibonacci level, which may be a sign of a slowdown in the growth of the dollar index. This week we should pay attention to see if the index will form a new higher high above the 107.40 level. If we are stationed in that zone, we can expect a continuation of growth towards the previous high at 109,290. For a bearish option, we need a lateral consolidation in the range of 105.50-106.50, which would put pressure on the lower trendline. Then, a break below and further retreat to the 103.50 level could happen.