US Dollar Index (DX) Futures Technical Analysis – June 5, 2018 Forecast

June U.S. Dollar Index futures are trading higher on Tuesday. The index is clawing back yesterday’s weakness, helped by price slides in the Euro, Australian and New Zealand Dollars. Gains are being limited by a drop in U.S. Treasury yields.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower. A trade through 94.975 will signal a resumption of the uptrend. A move through 93.63 will indicate the selling pressure is getting stronger.

The minor trend is down. It turned down on a trade through 93.69 on Monday. This move shifted momentum to the downside. A trade through 94.435 will change the minor trend to up. If 93.63 fails to hold then the next target will be the minor bottom at 93.20.

The main range is 92.115 to 94.975. Its retracement zone at 93.545 to 93.21 is the next downside target. Inside this zone is a major Fibonacci level at 93.35. Since the main trend is up, buyers could show up on a test of this area.

The minor range is 94.975 to 93.63. Its retracement zone at 94.30 to 94.46 is the primary upside target. Aggressive counter-trend sellers may target this zone. This would form a secondary lower top.

Daily Swing Chart Technical Forecast

Based on the early price action and the inside move, traders haven’t decided which way they want to move the index although there appears to be an upside bias developing.

A sustained move to the upside will target 94.30, 94.435 and 94.46. Aggressive counter-trend sellers may come in on a test of this zone in an effort to form a potentially bearish secondary lower top. Overtaking this zone will signal the return of buyers.

A sustained move to the downside will mean sellers are going after yesterday’s low at 93.63 and the 50% level at 93.545. We could see a technical bounce on the first test of this level since the main trend is up. Similar price action could take place on tests of 93.35 and 93.21.