US Dollar Index (DX) Futures Technical Analysis – April 29, 2016 Forecast

June US Dollar Index futures continued to take a pounding early Friday as the Japanese Yen built further on Thursday’s gains with a surge to an 18-month high against the dollar. Also contributing to the dollar’s weakness are poor U.S. growth numbers and the cautious tone taken by the Federal Reserve in its recent monetary policy statement.

The dollar received no support from economic data on Thursday as first quarter GDP data showed growth of just 0.5 percent in annualized terms. This news confirmed what many already suspected, that U.S. economic growth nearly stalled in the first quarter. The 0.5 percent growth paled against the previous 1.4 percent.

Given the weak GDP figure, the Fed might be in no hurry to deliver a rate hike in June as some expect. This could pressure the dollar into September or beyond.

Technically, the main trend is down according to the daily swing chart. Yesterday, the index took out the recent swing bottom at 93.62 and the August 24, 2015 main bottom at 93.50. This two prices are new resistance.

If the downside momentum continues today, the market could continue down to 93.01.