During the Asian trading session, the dollar index continued the bullish consolidation that started on Friday. During the Asian trading session, the dollar index continued the bullish consolidation that started on Friday. Now we have stabilized above the 104.00 level, we continue toward the 104.30 level. If the current trend continues, we could soon climb to 104.40 levels. There we would test the June high and need a break above to continue to the bullish side.
Potential higher targets are 104.50 and 104.60 levels. If we think bearish, we need a drop below the 104.00 level. Below we would see a pullback to 103.90, where the EMA50 moving average awaits us.
Later in the US session, we will have: The Service PMI report and The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) report. These two reports could shake up the dollar index and make a bigger move on the chart.