Dollar Index Sees Upsurge Ahead of US GDP Announcement
The dollar index has surged above the 104.00 mark in anticipation of the US GDP announcement. Yesterday marked a halt to the previous bearish trend of the dollar index, with support found at the 103.60 level.
Analyzing the Dollar Index Chart
Following its halt at 103.60, the dollar index displayed signs of bullish momentum, consolidating above the 104.00 level during the Asian trading session. The bullish trend persisted into the European session, reaching a weekly high at 104.25.
A slight pullback to the 104.00 level ensued, finding additional support from the EMA200 moving average. This support propelled the dollar into a new bullish consolidation phase. The next milestone is anticipated to be a break above 104.25, potentially reaching higher targets at 104.30 and 104.40.
Assessing Dollar Index Strength
The key to sustained growth lies in avoiding negative consolidation and maintaining levels above the EMA200 and 104.00. A breach below these levels could intensify bearish pressure, targeting the 103.80 daily open price as a critical support zone, followed by potential declines to 103.70 and 103.60 levels.
Impact of US GDP Announcement
The upcoming US GDP announcement is poised to impact the dollar index, with forecasts indicating a potential decrease from 4.9% to 3.3%. This news is anticipated to influence the dollar chart significantly, regardless of the outcome. Looking ahead, notable events include the German CPI, US Core PCE Price index, Initial Jobless Claims, and Chicago PMI index, with Eurozone inflation and the Chinese Manufacturing PMI index scheduled for Friday.