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U.S. Dollar Index (DX) Futures Technical Analysis – Strengthens Over 92.530, Weakens Under 92.510

By:
James Hyerczyk
Published: Mar 25, 2021, 07:03 UTC

The direction of the June U.S. Dollar Index on Thursday is likely to be determined by trader reaction to 92.530.

US Dollar Index

The U.S. Dollar is trading higher against a basket of major currencies Thursday after hitting its highest level since November 23 earlier in the session. The move is being fueled by worries over the Euro, which tested a four-month low during the Asian session. Traders fear the Euro Zone economy will be hobbled by extended lockdowns and delayed vaccine rollouts, while the U.S. pandemic response remains strong.

At 06:45 GMT, June U.S. Dollar Index futures are trading 92.595, up 0.065 or +0.07%.

The safe-haven greenback remained broadly stronger following a two-day rally amid worries ranging from Europe’s third COVID1-9 wave and potential U.S. tax hikes to the persistent specter of inflation, Reuters reported.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 92.690 will reaffirm the uptrend.

The main trend will change to down on a move through 91.920. This is highly unlikely, but the index may be ripe for a potentially bearish closing price reversal top.

On the upside, the next likely targets are 92.690 and 93.135.

On the downside, potential support levels are a series of retracement levels at 92.510, 92.200, 91.870 and 91.620.

Daily Swing Chart Technical Forecast

The direction of the June U.S. Dollar Index on Thursday is likely to be determined by trader reaction to 92.530.

Bullish Scenario

A sustained move over 92.530 will indicate the presence of buyers. The first upside target is 92.690. A sustained move over this level will indicate the buying is getting stronger. This could trigger an acceleration into 93.135 over the near-term.

Bearish Scenario

A sustained move under 92.530 will signal the presence of sellers. Taking out 92.510 could trigger a sharp break into 92.200. This is a potential trigger point for an acceleration to the downside with 91.870 the next likely target.

Side Notes

A close under 92.530 will form a potentially bearish closing price reversal top. If confirmed, this could trigger the start of a 2 to 3 day correction, but not necessarily a change in trend.

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

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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