US Dollar Index (DX) Futures Technical Analysis – Bullish Over 89.89, Bearish Under 89.70

June U.S. Dollar Index futures are trading lower shortly before the Fed’s announcements at 1800 GMT. Sellers came in early in the session after buyers failed to follow-through to the upside after touching a three-week high on Tuesday.

Traders are expecting the Fed to raise its benchmark interest rate by 25-basis points, but they aren’t sure about the number of future rate hikes. Some are betting on three more rate hikes while other anticipate only two more.

Essentially, a hawkish Fed should benefit the dollar while a dovish Fed is likely to drive the Greenback lower.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed when buyers took out 89.95 on Tuesday. However, the rally stopped at 90.025.

If buyers can take out 90.025 with enough buying volume later today, this could generate the upside momentum needed to challenge the March 1 top at 90.490.

The minor trend is also up. A trade through 89.32 will change the minor trend to down and shift momentum to the downside.

A move through 89.095 will change the main trend to down.

The main range is 87.830 to 90.490. Its retracement zone at 89.16 to 88.85 is the primary downside target. This zone has provided support two time in the past. This zone is support.

The short-term range is 90.490 to 88.915. Its retracement zone at 89.70 to 89.89 is currently being straddled. This zone is controlling the direction of the market today.

Daily Swing Chart Technical Forecast

Trader reaction to 89.89 and 89.70 will set the tone of the market today.

A sustained move over 89.89 will signal the presence of buyers. This could trigger a breakout to the upside.

A sustained move under 89.703 will indicate the presence of sellers. This could trigger an acceleration to the downside with 89.16 the next major target.