US Dollar Index (DX) Futures Technical Analysis – Strengthens Over 89.16, Weakens Under 88.85

June U.S. Dollar Index futures finished lower last week, settling at 89.033, down 0.764 or -0.85%. The main trend is down according to the weekly swing chart. However, momentum has been sideways since forming a minor bottom at 87.83 the week-ending February 16.

A trade through 87.83 will signal a resumption of the downtrend. The main trend will change to up on a move through 93.480.

The minor trend is also down. Minor tops come in at 90.025 and 90.49. A trade through 90.025 will change the minor trend to up. A move through 90.49 will indicate the buying is getting stronger.

A trade through 88.915 will signal a resumption of the minor trend. This could create the downside momentum needed to challenge 87.83.

The short-term range is 87.83 to 90.49. Its retracement zone at 89.16 to 88.85 is currently being tested. This zone is controlling the direction of the index.

The intermediate range is 93.48 to 87.83. Its retracement zone at 90.655 to 93.32 is the first upside target.

The main range is 94.42 to 87.83. Its retracement zone at 91.125 to 93.90 is the next target.

Combining the two retracement zones makes 91.125 to 91.32 the best resistance area.

Based on Friday’s close at 89.03, the direction of the dollar index this week is likely to be determined by trader reaction to 89.16 to 88.85.

A sustained move over 89.16 will signal the presence of buyers. This could generate the upside momentum needed to challenge 90.025 then 90.49.

A sustained move under 88.85 will indicate the presence of sellers. The daily chart could begin to accelerate to the downside under this level with 87.83 the next major downside target.