US Dollar Index (DX) Futures Technical Analysis – May 24 2018 Forecast

June U.S. Dollar Index futures are trading lower on Thursday. The market is posting an inside move which suggests investor indecision and impending volatility.

Pressuring the index today is the dovish Fed minutes and a drop in U.S. Treasury yields. Traders are also reacting to a proposal by U.S. President Trump looking into imposing new tariffs on imported cars. This is raising concerns over a possible trade war.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 94.115 will signal a resumption of the uptrend.

The minor trend is also up. The minor trend will change to down on a trade through the minor swing bottom at 93.20.

The short-term range is 93.20 to 94.115. Its 50% level or pivot at 93.66 is controlling the direction of the index today.

The intermediate range is 92.115 to 94.115. Its 50% level at 93.115 is the first downside target.

A major retracement zone comes in at 91.125 to 93.35. Holding over this zone will give the index a strong upside bias. A break back under 93.35 will indicate momentum may be shifting to the downside.

Daily Swing Chart Technical Forecast

Based on the early trade, the direction of the June U.S. Dollar Index is likely to be determined by trader reaction to the pivot at 93.66.

A sustained move over 93.66 will indicate the presence of buyers. Overcoming the previous top at 93.87 will indicate the buying is getting stronger with the next two targets at 94.115 and 94.42.

A sustained move under 93.66 will signal the presence of sellers. This move could trigger an acceleration to the downside with targets coming in at 93.35, 93.20 and 93.115.

The trigger point for an acceleration to the downside is 93.115.