U.S. Dollar Index (DX) Futures Technical Analysis – Continues to Build Support Base at 99.245 – 98.130

The U.S. Dollar is trading mixed against a basket of major currencies early Thursday. The greenback is being primarily supported by safe-haven buying as investors rushed to buy dollars in response to massive disruptions to global trade due to the coronavirus pandemic.

Most of the Dollar Index gains on Thursday are being attributed to a weaker Euro. With the Euro Zone economy in need of help from the coronavirus pandemic, officials have until April 9 to design a package that satisfies members with completely opposing views:  those calling for joint debt issuance and those fiercely against it.

At 08:28 GMT, June U.S. Dollar Index futures are trading 99.660, down 0.093 or -0.09%.

Look for volatility with the release of the latest weekly U.S. Unemployment Claims at 12:30 GMT. Economists say millions filed for jobless claims for the week-ending March 28, but many more millions are still expected in the weeks to come.

Many economists expect the claims to be about 4 million to 5 million when data on unemployment benefits is released.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 103.960 will signal a resumption of the downtrend. A move through 94.530 will change the main trend to down.

The minor trend is also up. A trade through 98.345 will change the minor trend to down. This will also shift momentum to the downside.

The short-term range is 94.530 to 103.960. Its retracement zone at 99.245 to 98.130 is support. This zone stopped the selling at 98.345 on March 27.

On the upside, the long-term resistance is the 50% level at 101.495.

Daily Technical Forecast

Based on the early price action and the current price at 99.660, the direction of the June U.S. Dollar Index futures contract on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 99.960.

Bullish Scenario

Taking out and sustaining a rally over 99.960 will indicate the presence of buyers. This could trigger a test of this week’s high at 100.125. This is a potential trigger point for an acceleration to the upside with the next target the major 50% level at 101.495.

Bearish Scenario

A sustained move under 99.960 will signal the presence of sellers. The first two downside targets are the short-term 50% level at 99.245 and the uptrending Gann angle at 99.030.

The Gann angle at 99.030 is a potential trigger point for an acceleration to the downside with the next targets the minor bottom at 98.345 and the Fibonacci level at 98.130.