Yahoo Finance U.S. Dollar Index Futures (DX) Technical Analysis – Weakens Under 97.700, Strengthens Over 97.930
The U.S. Dollar is trading lower against a basket of currencies on Friday with most of the weakness being fueled by a stronger British Pound and Swiss Franc. The dollar is also losing ground for a second session against the safe-haven Japanese Yen, but losses are being limited by a weaker Canadian Dollar and Euro.
At 07:48 GMT, September U.S. Dollar Index futures are trading 97.745, down 0.102 or -0.10%.
The British Pound is being supported by positive comments from European Commission President Jean-Claude Juncker, who said he thought Brussels could reach a deal with Britain to leave the European Union.
Traders should also note that the Swiss National Bank (SNB), Bank of England (BOE) and Bank of Japan all left policies unchanged on Thursday after the Fed cut rates on Wednesday.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 97.560 will signal a resumption of the downtrend. The main trend will change to up on a move through 98.670.
The short-term range is 96.960 to 98.900. Its retracement zone at 97.930 to 97.700 is currently being tested.
The main range is 94.975 to 98.900. Its retracement zone at 96.940 to 96.475 is the primary downside target. This zone is controlling the near-term direction of the index.
Daily Swing Chart Technical Forecast
Based on the early price action and the current price at 97.745, the direction of the December U.S. Dollar Index the rest of the session on Friday is likely to be determined by trader reaction to the short-term retracement zone at 97.930 to 97.700.
Bearish Scenario
A sustained move under 97.700 will indicate the presence of sellers. The first target is the main bottom at 97.560. This is a potential trigger point for an acceleration to the downside with 96.960 to 96.940 the next major targets.
Bullish Scenario
A sustained move over 97.700 will signal the presence of buyers. However, the 50% level at 97.930 is the potential trigger point for an acceleration to the upside with 98.290 the next likely upside target.
This article was originally posted on FX Empire
