U.S. Dollar Index (DX) Futures Technical Analysis – Trade Through 92.940 Targets 93.135 Main TopTaking out yesterday’s low at 92.520 will signal the first shift in momentum to the downside.
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%.
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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 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.
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