US Dollar Index (DX) Futures Technical Analysis – June 8, 2018 Forecast

Position-squaring ahead of the G-7 conference and a weaker U.S. Dollar are helping to drive the June U.S. Dollar Index futures contract higher on Friday. Gains are being limited, however, 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.

The minor trend is down. It was reaffirmed on Thursday when sellers took out the minor bottom at 93.20. The next minor bottom comes in at 93.005.

Today’s early strength took out yesterday’s high, making 93.19 a new minor bottom. Taking out this level will signal a resumption of the minor trend.

A long-term Fibonacci level comes in at 93.35.

The main range is 92.115 to 94.975. Its retracement zone at 93.545 to 93.21 straddles the Fib level at 93.35.

The key retracement levels were tested successfully on Thursday and earlier today. This makes 93.545, 93.35 and 93.21 support.

The short-term range is 94.975 to 93.19. Its retracement zone at 94.08 to 94.29 is the primary upside target. Trader reaction to this zone will tell us if the bulls are still in control, or if the bears are getting ready to form a secondary lower top.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the June U.S. Dollar Index today 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. If this generates enough upside momentum then look for a test of 94.08 to 94.29.

A sustained move under 93.545 will signal the presence of sellers. This could trigger a labored break into 93.35, 93.21 and 93.19.

Taking out 93.19 could trigger a steep break into 93.00.