The dollar index is testing support at 101.60

For a week now, the dollar index has been moving into lateral consolidation in the range of 101.60-102.20. 

Dollar index chart analysis

For a week now, the dollar index has been moving into lateral consolidation in the range of 101.60-102.20. Today we had a break below the 101.60 to 101.52 level at one place but quickly bounced back above. If we managed to stay above it again, the dollar could once again rise to the 102.20 level with positive consolidation. EMA 50 is of no use to us, and it is in the middle of this lateral consolidation, around 101.80 levels.

If the dollar reaches the 102.20 level and stays there, we will have a good opportunity to start further growth with a new positive consolidation. Potential higher targets are 102.40 and 102.50 levels. For a bearish option, we need a break below support at 101.60. After that, we could expect to see a further decline to the next lower support. Potential lower targets are 101.50 and 101.40 levels.

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