U.S. Dollar Index (DX) Futures Technical Analysis – Next Upside Objective 101.030 – 101.495

The U.S. Dollar is trading higher against a basket of currencies on Friday and is set for its biggest weekly gain since early April as the Euro weakened after a European Union meeting on Thursday to build a trillion Euro emergency fund fell short of satisfying investors’ concerns.

In other economic news, the German ifo Business Climate report came in lower than expected at 74.3. Traders were looking for a reading of 79.8. Last month, the report came in at 86.1. The data indicates that conditions are worsening in the Euro Zone.

At 09:10 GMT, June U.S. Dollar Index futures are trading 100.825, up 0.290 or +0.29%.

Later today at 12:30 GMT, the government will release its latest data on U.S. Durable Goods. Core Durable Goods are expected to have fallen by 6.1% and Durable Goods are expected to show come in at -12.0%.

At 14:00, the Revised University of Michigan Consumer Sentiment report is expected to drop to show a decline to 67.8 from 71.0.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 101.030 will reaffirm the uptrend. The main trend will change to down on a move through the last main bottom at 98.815.

The minor trend is also up. A trade through 99.990 will change the minor trend to down. This will also shift momentum to the downside.

The minor range is 98.345 to 101.030. Its 50% level or pivot at 99.925 is the nearest support.

The main range is 94.530 to 103.960. Its retracement zone at 99.245 to 98.130 is support. This zone stopped the selling at 98.815 to 98.345 within the last 30 days.

On the upside, the nearest target is a long-term 50% level at 101.495.

Daily Swing Chart Technical Forecast.

Given the current upside momentum, we’re looking for a rally into at least 101.030. Overtaking this top will indicate the buying is getting stronger with the next target 101.495. This is a potential trigger point for an acceleration to the upside.

On the downside, look for buyers to defend 99.990 to 99.923 since the main trend is up.

Side Notes

Since the Euro represents 57% of the index, look for the rally to continue as long as the single-currency continues to weaken.