US Dollar Index (DX) Futures Technical Analysis – Could Gain Strength on Sustained Move Over 91.91

March U.S. Dollar Index futures had a volatile session on Wednesday as investors aggressively sold the Greenback in response to a report that China may curtail future U.S. Treasury Bond purchases. Although the news drove up U.S. Treasury yields, the rally couldn’t offset huge gains by the Japanese Yen against the U.S. Dollar.

Daily Swing Chart Analysis

The main trend is up according to the daily swing chart. A trade through 92.36 will signal a resumption of the uptrend. The main trend will change to down on a move through 91.51 then 91.47. If the trend does change to down, we could see a further decline into the September 20 bottom at 91.00 and the September 8 bottom at 90.68.

On the upside, potential resistance levels are 92.24, 92.51, 92.72 and 92.76. The latter is the trigger point for an acceleration to the upside.

The new short-term range is 91.47 to 92.36. Its 50% level or pivot is 91.91. Trader reaction to this level will determine the short-term direction of the index.

Daily Swing Chart Forecast

Based on Wednesday’s close at 92.07 and yesterday’s price action, the direction of the March U.S. Dollar Index on Thursday will be determined by trader reaction to the short-term pivot at 91.91.

A sustained move over 91.91 will indicate the presence of buyers. The first target is a major Fibonacci level at 92.34. This is followed by the minor top at 92.36.

Overtaking 92.36 will indicate the buying is getting stronger. This could create the upside momentum needed to challenge a short-term 50% level at 92.51, a major 50% level at 92.72 and a short-term Fibonacci level at 92.76.

The Fib level at 92.76 is the trigger point for an acceleration to the upside.