U.S. Dollar Index (DX) Futures Technical Analysis – Counter-Trend Shift in Mometum Targets 92.490 – 92.495

The U.S. Dollar is trading lower at the mid-session on Wednesday after whip-saw price action earlier in the session was fueled by similar volatility in U.S. Treasury yields. As we head into the second half of the session, the greenback is rebounding from the early break that was triggered by the release of an unexpectedly weak private employment report.

At 16:47 GMT, September U.S. Dollar Index futures are trading 92.270, up 0.182 or +0.20%. This is up from a low of 91.820.

The initial downdraft came when the ADP National Employment Report showed U.S. private payrolls increased about half as much as economists had expected, likely constrained by shortages of workers and raw materials.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside earlier today when buyers took out 92.215. This move confirmed last Friday’s closing price reversal bottom. A trade through 91.780 will negate the closing price reversal bottom and signal a resumption of the downtrend.

The nearest support is a pair of retracement levels at 91.950 and 91.850.

On the upside, the nearest target is a resistance cluster at 92.490 to 92.495.

Daily Swing Chart Technical Forecast

The strong upside momentum and the low volume could trigger a further rally into 92.490 to 92.495. Since the main trend is down, look for sellers on the first test of this area.