US Dollar Index (DX) Futures Technical Analysis – May 15, 2018 Forecast
The U.S. Dollar is trading higher against a basket of major currencies on Monday, supported by rising U.S. Treasury yields that are making the dollar an attractive asset.
At 1226 GMT, June U.S. Dollar Index futures are trading 92.86, up 0.40 or +0.45%.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 93.26 will signal a resumption of the uptrend.
A move through 92.115 will negate yesterday's closing price reversal bottom, change the minor trend to down and shift momentum to the downside.
The short-term range is 93.26 to 92.115. Its 50% level or pivot at 92.69 is controlling today's price action.
The market is also trading inside a major retracement zone with 92.30 support and 93.35 resistance.
Daily Swing Chart Technical Forecast
Based on the early price action, the direction of the June U.S. Dollar Index the rest of the session is likely to be determined by trader reaction to the pivot at 92.69.
A sustained move over 92.69 will indicate the presence of buyers. This could generate the upside momentum needed to challenge the main top at 93.26, the major Fibonacci level at 93.35 and the December 12 main top at 93.48.
A sustained move under 92.69 will signal the presence of sellers. This could drive the index back into 92.30, 92.115 and 91.90.
Watch the price action and read the order flow at 92.69 all session. Trader reaction to this level will tell us if buyers have returned or if the selling pressure is starting to increase.
This article was originally posted on FX Empire
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