US Dollar Index (DX) Futures Technical Analysis – Taking Out 91.47 With Conviction Could Trigger Break into 91.00

March U.S. Dollar Index futures settled lower on Thursday after an early session attempt to rally failed to draw the attention of enough buyers to continue the move. A stronger Euro then helped drive the index lower, putting it in a position to take out this week’s low.

A stronger-than-expected U.S. private-sector jobs report briefly helped the dollar pare losses versus the Euro and extend gains against the Japanese Yen, but those moves were short-lived. According to data from ADP Research Institute, U.S. private employers added 250,000 jobs in December. Traders were looking for a gain of 190,000 jobs.

The main trend is down according to the daily swing chart. A move through 91.47 will signal a resumption of the downtrend. If this occurs then 92.00 will become a new main top.

Taking out 91.47 could trigger an acceleration to the downside if it occurs with better than average volume. The daily swing chart shows there is plenty of room to the downside with potential targets the September 20 main bottom at 91.00 and the September 8 main bottom at 91.47.

The main range is 90.68 to 94.76. Its retracement zone is 92.72 to 92.24. This zone is controlling the longer-term direction of the index. Look for a long-term downside bias as long as the index remains on the bearish side of this zone.