The dollar index, after one year, again below the 100.00

<div><img width="1155" height="768" src="https://www.financebrokerage.com/wp-content/uploads/2023/04/shutterstock_393692620.jpg" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="The U.S. dollar rallied on Monday. What about the Sterling? " decoding="async" loading="lazy" /></div><h1><b>The dollar index, after one year, again below the 100.00</b></h1>
<ul>
<li aria-level="1">Last Friday, the dollar index fell below the EMA50 moving average and thus started this week&#8217;s retreat.</li>
</ul>
<h2><b>Dollar index chart analysis</b></h2>
<p>Last Friday, the dollar index fell below the EMA50 moving average and thus started this week&#8217;s retreat. From 103.10 levels, the dollar fell this morning to 99.57 levels. At the beginning of the EU session, the index manages to consolidate and initiate a short recovery. For now, we need a break above the 100.00 level if we want to see a <a href="https://www.financebrokerage.com/diamond-continuation-pattern/">continuation</a> of the dollar&#8217;s recovery. Potential higher targets are 100.50 and 101.00 levels.</p>
<p>We need a negative consolidation and a new visit to the previous low for a bearish option. I then push the breakout below to form a new low and start a bearish decline. Potential lower targets are 99.50 and 99.00 levels.</p>
<p>The major economic news affecting the US dollar this week was the report that inflation eased to 3.0%. This kind of news tells us that the FED is on the right track to lower inflation below 2.0% and that there should be no interest rate hike at the next FED meeting. It seems that the interest rate&#8217;s current size is sufficient to affect inflation positively.</p>
<p><img decoding="async" loading="lazy" class="aligncenter wp-image-211792 size-large" src="https://www.financebrokerage.com/wp-content/uploads/2023/07/fA817yGH-1024×621.jpg" alt="Dollar Index chart analysis" width="1024" height="621" /></p>
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