US Dollar Index (DX) Futures Technical Analysis – Anticipating Sharp Break Under 93.19

June U.S. Dollar Index futures closed lower last week. Traders were primarily reacting to the strong recovery in the Euro which strengthened after geopolitical concerns in Italy subsided. Investors also booked profits ahead of the G-7 conference. Losses were limited, however, due to firm Treasury yields and high expectations for a Fed rate hike this week.

Weekly Swing Chart Technical Analysis

The main trend is up according to the weekly swing chart. A trade through 94.975 will signal a resumption of the uptrend.

The minor trend is also up, however, last week’s price action formed a new minor top at 94.975. A trade though 92.115 will change the minor trend to down. This will also shift momentum to the downside.

The main range is 97.772 to 87.83. Its retracement zone is 92.30 to 93.36. Holding above this zone will help support the current upside bias. For three consecutive weeks, 93.36 has held as support.

The short-term range is 87.83 to 94.975. If there is a sell-off then its retracement zone at 91.40 to 90.56 will become the primary downside target.

Weekly Swing Chart Technical Forecast

Based on the early price action, the direction of the June U.S. Dollar Index this week is likely to be determined by trader reaction to the Fibonacci level at 93.36.

A sustained move over 93.36 will indicate the presence of buyers. If this generates enough upside momentum then look for a possible drive into 94.975. This is a potential trigger point for an acceleration into 97.77.

A sustained move under 93.36 will signal the presence of sellers. The daily chart hows that this is a potential trigger point for an acceleration into 92.30 then 92.115.

Additional downside targets come in at 91.40 to 90.56.