U.S. Dollar Index Futures (DX) Technical Analysis – Trade Through 97.405 Changes Trend to Up

The U.S. Dollar is trading flat-to-lower early Friday as most of the major players have moved to the sidelines ahead of today’s U.S. Non-Farm Payrolls report. Market participants are looking for the report to show the economy added 164,000 new jobs in December, from 266,000 the previous month.

Helping to boost the greenback this week has been the weaker Japanese Yen. It’s been falling since investors have been shedding safe-haven assets in response to the easing of tensions between the United States and China. The focus for traders has now shifted back to the U.S. economy and the trade deal between the United States and China.

At 05:39 GMT, March U.S. Dollar Index futures are trading 97.130, down 0.032 or -0.04%.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending higher. The main trend will change to up on a trade through 97.405. A move through 96.020 will signal a resumption of the downtrend.

The minor trend is up. This is driving the upside momentum.

The main range is 94.665 to 98.735. Its retracement zone at 96.700 to 96.220 is support.

The short-term range is 98.045 to 96.020. Its retracement zone at 97.035 to 97.270 is currently being tested.

The intermediate range is 98.735 to 96.020. The primary upside target is its retracement zone at 97.380 to 97.700.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the March U.S. Dollar Index on Friday is likely to be determined by trader reaction to the 50% level at 97.035.

Bullish Scenario

A sustained move over 97.035 will indicate the presence of buyers. The first upside target is the Fibonacci level at 97.270. This level stopped the buying on Thursday.

Overtaking 97.270 will indicate the buying is getting stronger. This could lead to a test of the potential resistance cluster at 97.380 to 97.045. The latter is a potential trigger point for an acceleration into the Fibonacci level at 97.700.

Bearish Scenario

A sustained move under 97.035 will be a sign of weakness. This could trigger an acceleration to the downside with the next target 96.700.

Side Notes

Look for heightened volatility with the release of the U.S. jobs report at 13:30 GMT.