U.S. Dollar Index Futures (DX) Technical Analysis – Powell’s Positive Comments Fuel Rebound Rally

The main trend is up according to the daily swing chart. A trade through 99.330 will signal a resumption of the uptrend after a three day setback. A move through 97.370 will change the main trend to down.
James Hyerczyk
U.S. Dollar Index

The U.S. Dollar is trading slightly lower against a basket of currencies late Friday, but the best way to describe the tone of the day is indecisive. This assessment is being confirmed by the inside move. A mixed reaction to the U.S. Non-Farm payrolls report is the catalyst behind the price action.

At 19:28 GMT, September U.S. Dollar Index futures are trading 98.360, down 0.0022 or -0.02%.

The dollar was under pressure around 12:30 GMT when a mixed report on the U.S. jobs market in August reinforced the view of a slowing economic expansion and the possibility of more interest rate cuts from the Federal Reserve.

The greenback began to claw back most of its losses after Federal Reserve Chairman Jerome Powell said, “We’re not forecasting or expecting a recession,” he said. “The most likely outlook is still moderate growth, a strong labor market and inflation continuing to move back up.”

Against the major currencies late in the session, the U.S. Dollar is mixed. The Euro is trading flat to lower. The British Pound is lower, but the Canadian Dollar is higher. The safe-haven Japanese Yen and Swiss Franc are off their highs.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 99.330 will signal a resumption of the uptrend after a three day setback. A move through 97.370 will change the main trend to down.

The short-term range is 97.370 to 99.330. Its retracement zone at 98.350 to 98.120 is acting like support.

The main range is 96.980. Its retracement zone at 98.160 to 97.880 stopped the selling on Thursday at 98.035.

The two zones combine to form a key support area at 98.160 to 98.120.

Gann Angle Support and Resistance

Late in the session on Friday, resistance is being provided by an uptrending Gann angle at 98.495 and a downtrending Gann angle at 98.580. Prices are likely to remain rangebound into the close as long as the index remains under these angles.

On the downside, taking out 98.12 to 98.16 will be a signal of weakness. A failure at yesterday low at 98.035 could trigger a further decline into an uptrending Gann angle at 97.935.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US