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The U.S. Dollar is trading lower against a basket of major currencies at the mid-session. Earlier in the session, the greenback rallied on the back of yesterday’s Fed minutes which came in less-dovish than expected. Surprisingly, the dollar solidified its gains made on Wednesday after the release of a weekly U.S. jobless claims that once again surged over 1 million.
However, the index could not hold on to its earlier gains and prices turned lower. This is probably because the initial move was fueled by short-covering. If this market is going to move higher then buyers are going to have to come in on this break. They are going to have to form a secondary higher bottom.
At 17:24 GMT, September U.S. Dollar Index futures are trading 92.780, down 0.100 or -0.11%.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 93.890 will change the main trend to up. A move through 92.110 will signal a resumption of the downtrend and make 93.245 a new main top.
The short-term range is 93.890 to 92.110. Its retracement zone at 93.00 to 93.21 is resistance. This zone stopped the rally earlier today.
The minor range is 92.11 to 93.245. Its retracement zone at 92.680 to 92.545 is the next downside target.
Daily Swing Chart Technical Forecast
The next move will be determined by trader reaction to 92.680 to 92.545. Aggressive counter-trend buyers are going to try to form a potentially bullish secondary higher bottom. Trend traders are going to try to take out this zone and chase a new more than two year low.
Basically, in order to generate the start of a solid rally then 92.545 has to hold and the buying is going to have to be strong enough to take out 93.245.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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