US Dollar Index (DX) Futures Technical Analysis – Closing Price Reversal Top Could Trigger Move into 89.52 to 89.20

The U.S. Dollar closed lower against a basket of currencies on Thursday, posting a potentially bearish closing price reversal top after U.S. President Donald Trump’s decision to impose tariffs on steel and aluminum took the wind out of the Greenback’s week-long recovery. Earlier in the session, the index was driven to a six-week high on hawkish-sounding comments by new Federal Reserve Chair Jerome Powell.

March U.S. Dollar Index futures settled at 90.281, down 0.270 or -0.30%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum may have shifted to the downside with the formation of a closing price reversal top. A trade through 90.160 will confirm the chart pattern. This could signal the start of a 2 to 3 day correction.

A trade through 90.885 will negate the chart pattern and signal a resumption of the uptrend with 92.360 the next likely upside target.

The retracement zone at 90.99 to 91.66 is the primary upside target and resistance area. It is controlling the longer-term direction of the index.

The next range is 92.360 to 88.150. Its retracement zone is 90.255 to 90.752. This zone was straddled on Thursday. Trading on the weak side of 90.752 will give the index a downside bias.

The short-term range is 88.150 to 90.885. Its retracement zone at 89.52 to 89.195 is the primary downside target. Since the main trend is up, buyers could come in on a test of this zone.

Daily Swing Chart Technical Forecast

Based on Thursday’s price action and the close at 90.281, the direction of the index today is likely to be determined by trader reaction to 90.26 and 90.16.

A sustained move under 90.16 will indicate the presence of sellers. They could generate the downside momentum needed to challenge 89.52 to 89.195.

A sustained move over 90.26 will signal the presence of buyers. If this move draws the attention of buyers then look for a possible drive into 90.75, followed by 90.885 and 90.99.

The main 50% level at 90.99 is the trigger point for an acceleration into 91.66.