U.S. Dollar Index (DX) Futures Technical Analysis – Short-Term Bullish Over 99.690, Bearish Under 99.245

The U.S. Dollar is trading lower against a basket of major currencies late in the session on Wednesday. The index was pressured early in the session as investors shed the safe-haven asset in favor of higher risk, but higher-yielding equities. Later in the session, the index moved closer to a two-week low after the release of the U.S. Federal Reserve interest rate and monetary policy decisions.

At 19:36 GMT, June U.S. Dollar Index futures are trading 99.600, down 0.334 or -0.33%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum has been trending lower since the formation of the closing price reversal top on April 24.

A trade through the pair of main tops at 100.975 and 101.030 will signal a resumption of the uptrend.

The main trend will change to down on a move through the last main bottom at 98.815.

The minor range is 98.345 to 101.030. Its 50% level or pivot at 99.690 is controlling the short-term direction of the index.

The main range is 94.530 to 103.960. Its retracement zone at 99.245 to 98.130 is the next major support zone. This zone stopped the selling at 98.345 on March 27 and at 98.815 on April 14.

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

Short-Term Outlook

The first key level to watch is the minor pivot at 99.690. Holding above this level will indicate the presence of buyers.

A sustained move under 99.690 will signal the presence of sellers. This could trigger a quick break into the main 50% level at 99.245. Since the main trend is up, buyers could come in on the first test of this level.

If 99.245 fails as support then look for the selling to possibly extend into the main bottoms at 98.815 and 98.345, followed by the Fibonacci level at 98.130.

Side Notes

The longer-term direction of the June U.S. Dollar Index will be determined by trader reaction to 99.245 to 98.130.