The dollar index is under big pressure below 104.00 level

• The dollar has been very bearish this week; yesterday, we saw a drop to 103.43. 

Dollar index chart analysis

The dollar has been very bearish this week; yesterday, we saw a drop to 103.43. The index’s pullback started last Wednesday after jumping to 104.98 levels. On Monday, we managed to hold above 104.00, but on Tuesday, we saw a drop below and a new low formed at 103.80.

Wednesday brought us consolidation and stabilization that only lasted until Thursday. Yesterday, in the Asian session, the dollar was under pressure and started a bearish consolidation. This continued until we went down to the 103.40 level. After that, the index consolidated and started a recovery up to 104.10 levels.

Does the dollar index go to 103.00 after falling below the 104.00 level?

In this zone, we encounter the EMA200 moving average, which puts additional pressure on the index and its movement, not allowing us to move above. During this morning’s Asian session, we saw a pullback below the 104.00 level, adding pressure to the already weakened dollar.

Next week, we will have a lot of important economic news that could shake the market. New Home Sales on Monday, Core Durable Goods Orders and CB Consumer Confidence on Tuesday. On Wednesday morning, the Reserve Bank of New Zealand will announce whether it will leave the interest rate below the level as before or whether we will see a change. In the afternoon, the important news is the gross domestic product from the US market.

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