U.S. Dollar Index (DX) Futures Technical Analysis – Trader Reaction to 92.070 Sets Friday’s Early Tone

The U.S. Dollar is trading steady against a basket of currencies late Thursday as investors positioned themselves ahead of Friday’s U.S. jobs report.

The market continued to see support from the previous session that was fueled by seemingly hawkish comments from a top Federal Reserve official. The greenback was also underpinned by a rise in Treasury yields following the release of the U.S. weekly jobless claims report.

At 20:56 GMT, September U.S. Dollar Index futures are trading 92.270, down 0.004 or -0.00%.

Weekly initial jobless claims came in at 385,000 on Thursday, according to the Labor Department, matching expectations.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher following the confirmation of the closing price reversal bottom on July 30.

A move through 93.195 will change the main trend to up. A trade through 91.780 will negate the closing price reversal bottom and signal a resumption of the downtrend.

On the downside, support is a pair of retracement levels at 91.950 and 91.850.

On the upside, resistance is a pair of retracement levels at 92.490 and 92.495.

Daily Swing Chart Technical Forecast

The direction of the September U.S. Dollar Index early Friday is likely to be determined by trader reaction to 92.070.

Bullish Scenario

A sustained move over 92.070 will indicate the presence of buyers. If this is able to generate enough upside momentum the look for the rally to possibly extend into 92.490 to 92.495. The latter is a potential trigger point for an acceleration to the upside.

Bearish Scenario

A sustained move under 92.070 will signal the presence of sellers. If this creates enough downside momentum then look for the selling to possibly extend into 91.950 to 91.850.