US Dollar Index (DX) Futures Technical Analysis – June 6, 2018 Forecast

The U.S. Dollar is down against a basket of currencies shortly before the U.S. Forex opening on Wednesday. The Greenback is primarily being pressured by a surge in the heavily-weighted Euro, and strong gains in the commodity-linked Australian and New Zealand Dollars.

At 1030 GMT, the June U.S. Dollar Index is trading 93.580, down 0.291 or -0.31%.

Losses are being limited by a stronger USD/JPY, which is being supported by higher U.S. Treasury yields. The USD/CAD is giving up earlier gains that were driven by concerns over NAFTA.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. However, momentum is trending lower.

The minor trend is down. A trade through 94.295 will change the minor trend to up. The minor trend is controlling the downside momentum.

The main range is 92.115 to 94.975. Its retracement zone at 93.545 to 93.21 is the primary downside target. Inside this zone is a major Fibonacci level at 93.35. This makes it a valid downside target also.

The short-term range is 94.975 to 93.565. Its retracement zone at 94.27 to 94.44 is new resistance.

Daily Swing Chart Technical Forecast

Based on the early trade and the current price at 93.610, the direction of the June U.S. Dollar Index the rest of the session is likely to be determined by trader reaction to the 50% level at 93.545.

A sustained move over 93.545 will indicate the presence of buyers. This could trigger an intraday retracement of the earlier sell-off. Potential upside targets include 94.270 to 94.295.

A sustained move under 93.545 will signal the presence of sellers. This could lead to a labored break into the major Fib level at 93.35 and the minor Fib level at 93.21.

The Fib level at 93.21 and the minor bottom at 93.20 form a support cluster. Look out to the downside if 93.20 is eventually taken out.

Since the main trend is up, don’t be surprised if buyers show up on a test of 93.545 to 93.20. It is a value zone and attractive to both new buyers and profit-takers, looking to cash in their current counter-trend short positions.