US Dollar Index (DX) Futures Technical Analysis – June 4, 2018 Forecast

A stronger Euro and commodity-linked currencies is helping to drive the June U.S. Dollar Index lower on Monday. Profit-taking is also helping to weaken the index. Friday’s better-than-forecast U.S. jobs report solidified a June Fed rate hike so traders may believe this has been fully-priced into the index, making it time to square positions.

Daily Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is close to turning down. A trade through 94.975 will signal a resumption of the uptrend. The main trend will change to down on a move through 92.115.

The minor trend is also up. A trade through 93.69 will change the minor trend to down. This will also shift momentum to the downside. If the selling pressure continues then look for it to possibly extend into minor bottoms at 93.20 and 93.00.

The short-term range is 92.115 to 94.975. Its retracement zone at 93.545 to 93.21 is the primary downside target. Since the main trend is up, buyers could show up on the first test of this zone.

The main range is 88.945 to 94.975. Its retracement zone at 91.96 to 91.25 is the next downside target.

Daily Technical Forecast

Based on the early price action, the direction of the index the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 93.99.

A sustained move under 93.99 will indicate the presence of sellers. Taking out 93.69 will change the minor trend to down with the 50% level at 93.545 the next target.

If 93.545 fails then look for the selling to extend into a support cluster at 93.21 to 93.20.

Overcoming and sustaining a move over 93.99 will indicate the return of buyers. The next upside target over this angle is the minor top at 94.435.

The most important level on the daily chart today is 93.20. The index is vulnerable to the downside under this level with the next targets coming in at 92.115 to 91.96.