James Hyerczyk
Add to Bookmarks

The U.S. Dollar is trading lower against a basket of major currencies on Friday as investors trim positions ahead of the weekend. The greenback is also weaker despite rising Treasury yields. This along with firmer equity prices suggests the dollar’s appeal as a safe-haven asset may be diminishing.

At 10:36 GMT, June U.S. Dollar Index futures are trading 92.735, down 0.091 or -0.10%.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

On Thursday, the U.S. Dollar reached a fresh four-month high before slashing its gains. Today, the greenback is being pressured by a firm Euro despite concerns about extended lockdowns in Europe and forecasts calling for the single currency to fall to $1.16 as Europe’s economic recovery from the pandemic lags.

Daily June U.S. Dollar Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 92.940 will signal a resumption of the uptrend. The main trend changes to down on a move through 91.290.

On the downside, retracement level support comes in at 92.510, 92.200, 91.870 and 91.620.


Daily Swing Chart Technical Forecast

A trade through 92.940 will indicate the presence of buyers. This could trigger a surge into the November 11, 2020 main top at 93.135. This is a potential trigger point for an acceleration to the upside with the November 2, 2020 main top at 94.085 the next potential upside target.

The inability to follow-through to the upside will be the first sign of selling pressure. Taking out yesterday’s low at 92.520 will signal the first shift in momentum to the downside.

A trade through the Fibonacci level at 92.510 will indicate the selling pressure is getting stronger. This could trigger a further break into a second Fibonacci level at 92.200.

Since the main trend is up, buyers could come in on the test of the retracement levels. Any sell-off is likely to be a labored event because of the way the support is stacked up.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker