U.S. Dollar Index (DX) Futures Technical Analysis – Strengthens Over 100.345, Weakens Under 100.030

Demand for the U.S. Dollar is rising broadly on Wednesday amid growing concerns in the financial markets that the coronavirus pandemic is far from over. The greenback is finding footing against a basket of major currencies as investors returned to safe-havens, reversing some risk currency gains made on hopes the coronavirus crisis in Europe and New York was slowing.

At 09:42 GMT, June U.S. Dollar Index futures are trading 100.255, up 0.341 or +0.35%.

The dollar, which for about a month has very closely tracked risk appetite, is edging up against the Euro, British Pound and Canadian Dollar. Against the safe-haven, Swiss Franc and Japanese Yen, the dollar is trading sideways to higher.

Daily Technical Analysis

The main trend is up according to the daily swing chart, but the rally has stalled slightly below a major 50% retracement level. A move through 101.030 will signal a resumption of the uptrend. The main trend will change to down on a trade through the last swing bottom at 98.345.

On the upside, minor retracement zone resistance comes in at 101.155 to 101.815. Inside this zone is a major 50% level at 101.495.

The main range is 94.530 to 103.960. Its retracement zone at 99.245 to 98.130 is major support. This zone stopped the selling at 93.345 on March 27. It is controlling the near-term direction of the index.

Daily Technical Forecast

Based on the early price action and the current price at 100.255, the direction of the June U.S. Dollar Index the rest of the session on Wednesday is likely to be determined by trader reaction to a pair of uptrending Gann angles at 100.345 and 100.030.

Bullish Scenario

A sustained move over 100.345 will indicate the presence of buyers. This could trigger a rally into a downtrending Gann angle at 100.960.

Taking out 100.960 will indicate the buying is getting stronger. This could trigger a further rally into 101.030 and 101.495.

Bearish Scenario

A sustained move under 100.030 will signal the presence of sellers. This could trigger a break into the 50% level at 99.245. This is a potential trigger point for an acceleration to the downside with 98.130 the next major target.