US Dollar Index (DX) Futures Technical Analysis – Takes Out NFP High on Bullish Job Openings Report

September U.S. Dollar Index futures rebounded from early weakness after the U.S. Labor Department reported a record high number of job openings in June. The price surge took out Friday’s high which was reached on the back of robust U.S. Non-Farm Payrolls data for July.

According to the Bureau of Labor Statistics, the number of openings was at 6.2 million on the last business day of the month, a record high. This represents an increase from 5.7 million on the last business day of May.

Further research shows that the June number is the highest reported since the Labor Department began tracking the series in December 2000. The previous monthly job openings record was set in July 2015.

The Labor Department report went on to say that for the month of June, reported hires and separations were little changed at 5.4 million and 5.2 million respectively.

Swing Chart Analysis

The main trend is down according to the daily swing chart, however, momentum has shifted to the upside. The main trend will change to up on a move through 94.115.

The short-term range is 94.115 to 92.39. Its retracement zone is 93.25 to 93.46. Crossing to the strong side of this zone shifted momentum to up. The 61.8% level at 93.46 and the 50% level at 93.25 are new support levels.

The main range is 95.96 to 92.39. Its retracement zone at 94.175 to 94.60 is the primary upside target.

Gann Angle Analysis

The rally has put the dollar index on the strong side of a downtrending Gann angle at 93.46 and on the strong side of an uptrending angle at 93.39. Upside momentum should continue as long as the index stays above 93.39.

A failure to hold 93.25 is likely to drive the market into an uptrending angle at 92.89.

Taking out 94.115 will not only change the trend to up, but it could lead to an eventual test of the next downtrending Gann angle at 94.71 today.