US Dollar Index (DX) Futures Technical Analysis – If Upside Momentum Continues, Look for Test of 93.36 to 93.48

The U.S. Dollar rose last week against a basket of major currencies. The rally was primarily supported by the contrast in monetary policy between the hawkish U.S. Federal Reserve and other dovish central banks.

Last week, June U.S. Dollar Index futures settled at 92.41, up 1.07 or +1.17%.

Weekly Swing Chart Technical Analysis

The main trend is down according to the weekly chart, however, momentum is trending higher.

A trade through 93.48 will change the main trend to up. The minor trend is up. This is what is controlling the upside momentum.

The contract range is 96.77 to 87.83. The index is currently testing its retracement zone at 92.30 to 93.36. This zone is controlling the longer-term direction of the index.

The main range is 94.42 to 87.83. Its retracement zone at 91.13 to 91.90 is support.

The intermediate range is 93.48 to 87.83. Its retracement zone at 90.65 to 91.32 is additional support.

Weekly Swing Chart Technical Forecast

Based on last week’s close at 92.41, the direction of the index this week is likely to be determined by trader reaction to the contract 50% level at 92.30.

A sustained move over 92.30 will indicate the presence of buyers. If this generates enough upside momentum, we could see a drive into the contract Fibonacci level at 93.36.

Taking out 93.36 will indicate the buying is getting stronger. This could trigger a breakout over 93.48 and a change in trend to up. This is a potential trigger point for an even stronger rally into the next main top at 94.42.

A sustained move under 92.30 will signal the presence of sellers. This could lead to a labored break with a series of retracement levels at 91.90, 91.32, 91.12 and 90.66 potential downside targets.