U.S. Markets close in 1 hr 25 mins
  • S&P 500

    4,146.47
    -16.82 (-0.40%)
     
  • Dow 30

    34,199.42
    -128.37 (-0.37%)
     
  • Nasdaq

    13,383.01
    +3.96 (+0.03%)
     
  • Russell 2000

    2,237.07
    +9.95 (+0.45%)
     
  • Crude Oil

    65.41
    -0.86 (-1.30%)
     
  • Gold

    1,869.90
    +2.30 (+0.12%)
     
  • Silver

    28.39
    +0.11 (+0.39%)
     
  • EUR/USD

    1.2235
    +0.0079 (+0.6485%)
     
  • 10-Yr Bond

    1.6490
    +0.0090 (+0.55%)
     
  • Vix

    19.78
    +0.06 (+0.30%)
     
  • GBP/USD

    1.4190
    +0.0053 (+0.3732%)
     
  • USD/JPY

    108.8600
    -0.3400 (-0.3114%)
     
  • BTC-USD

    43,042.47
    -207.86 (-0.48%)
     
  • CMC Crypto 200

    1,207.79
    -45.36 (-3.62%)
     
  • FTSE 100

    7,034.24
    +1.39 (+0.02%)
     
  • Nikkei 225

    28,406.84
    +582.01 (+2.09%)
     

U.S. Dollar Index (DX) Futures Technical Analysis – Weakens Under 91.100, Strengthens Over 91.270

James Hyerczyk
·2 min read

The U.S. Dollar is inching lower against a basket of currencies early Wednesday after posting a potentially bullish closing price reversal top the previous session. Nonetheless, the index is still hovering just above a seven-week low with subdued U.S. bond yields reducing the currency’s yield appeal.

The safe-haven greenback was pressured early Tuesday but turned around and moved higher late in the day as world stocks pulled back from record highs as flare ups in coronavirus infections from India to Canada soured the outlook for a quick global recovery.

At 03:06 GMT, June U.S. Dollar Index futures are trading 91.185, down 0.042 or -0.05%.

Daily June U.S. Dollar Index
Daily June U.S. Dollar Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum may be getting ready to shift to the upside. A trade through 93.470 will change the main trend to up. A move through 90.840 will negate the closing price reversal bottom, signaling a resumption of the downtrend.

A trade through 91.270 will confirm the closing price reversal bottom. This won’t change the main trend to up, but it will shift momentum to the upside. It could also trigger the start of a 2 to 3 day counter-trend correction.

The short-term range is 89.655 to 93.470. The market is currently testing its retracement zone at 91.555 to 91.100.

The main range is 94.590 to 89.155. Its retracement zone at 91.870 to 92.510 is resistance. This zone is also controlling the near-term direction of the dollar index.

Daily Swing Chart Technical Forecast

The direction of the June U.S. Dollar Index on Wednesday is likely to be determined by trader reaction to 91.100 and 91.270.

Bearish Scenario

A sustained move under 91.100 will indicate the presence of sellers. This could trigger a move into 90.840. Taking this out could create enough downside momentum to challenge the next minor bottom at 90.620.

Bullish Scenario

A sustained move over 91.270 will confirm the closing price reversal bottom. This could trigger a surge into 91.555. Overtaking this level could extend the rally into 91.810 to 91.870.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

More From FXEMPIRE: