U.S. Dollar Index (DX) Futures Technical Analysis – Near-Upside Objective is 98.230

An uneasy mood in the global economy has put the U.S. Dollar Index on course for its best week in a month. On Friday, the index is trading a little flat against a basket of major currencies, particularly the Euro which is edging higher after inching off two-week lows. Traders are also awaiting news from a European Union online summit, where Germany and France are trying to swing other members behind them on a joint EU rescue fund.

At 09:50 GMT, September U.S. Dollar Index futures are trading 97.395, down 0.005 or -0.01%.

The dollar has strengthened throughout the week as concerns about a rise in new coronavirus cases globally and higher-than-expected U.S. unemployment claims drove demand for the safe-haven currency. Traders are worried about the coronavirus pandemic’s impact on economic growth.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart; however, momentum is trending higher. A trade through 95.57 will signal a resumption of the downtrend. A move through 99.890 will change the main trend to up.

The minor trend is up. This is controlling the upside momentum. A trade through 96.385 will change the minor trend to down. This will shift momentum to the downside.

The minor range is 95.570 to 97.555. Its 50% level at 96.565 is potential support.

The main range is 94.670 to 103.980 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of its retracement zone at 98.230 to 99.325.

Daily Swing Chart Technical Forecast

A trade through 97.555 will indicate the buying is getting stronger. If this creates enough upside momentum then look for the rally to possibly extend into the main Fibonacci level at 98.230.

A failure to overcome or sustain a rally over 97.555 will signal the presence of sellers. This could eventually lead to a pullback into the minor pivot at 96.565.

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