U.S. Dollar Index Futures (DX) Technical Analysis – Weakens Under 97.700, Strengthens Over 97.930

Based on the early price action and the current price at 97.745, the direction of the December U.S. Dollar Index the rest of the session on Friday is likely to be determined by trader reaction to the short-term retracement zone at 97.930 to 97.700.
James Hyerczyk
U.S. Dollar Index

The U.S. Dollar is trading lower against a basket of currencies on Friday with most of the weakness being fueled by a stronger British Pound and Swiss Franc. The dollar is also losing ground for a second session against the safe-haven Japanese Yen, but losses are being limited by a weaker Canadian Dollar and Euro.

At 07:48 GMT, September U.S. Dollar Index futures are trading 97.745, down 0.102 or -0.10%.

The British Pound is being supported by positive comments from European Commission President Jean-Claude Juncker, who said he thought Brussels could reach a deal with Britain to leave the European Union.

Traders should also note that the Swiss National Bank (SNB), Bank of England (BOE) and Bank of Japan all left policies unchanged on Thursday after the Fed cut rates on Wednesday.

Daily December U.S. Dollar Index

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart. A trade through 97.560 will signal a resumption of the downtrend. The main trend will change to up on a move through 98.670.

The short-term range is 96.960 to 98.900. Its retracement zone at 97.930 to 97.700 is currently being tested.

The main range is 94.975 to 98.900. Its retracement zone at 96.940 to 96.475 is the primary downside target. This zone is controlling the near-term direction of the index.

Daily Swing Chart Technical Forecast

Based on the early price action and the current price at 97.745, the direction of the December U.S. Dollar Index the rest of the session on Friday is likely to be determined by trader reaction to the short-term retracement zone at 97.930 to 97.700.

Bearish Scenario

A sustained move under 97.700 will indicate the presence of sellers. The first target is the main bottom at 97.560. This is a potential trigger point for an acceleration to the downside with 96.960 to 96.940 the next major targets.

Bullish Scenario

A sustained move over 97.700 will signal the presence of buyers. However, the 50% level at 97.930 is the potential trigger point for an acceleration to the upside with 98.290 the next likely upside target.

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
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