USD Falters, Dollar Index Futures Post Retracement

It has been a tough few days for the Greenback. The weekend buzz over the coming U.S. vs the world trade war has not yet subsided and the USD has felt the pain. Today’s session has brought more pressure, with the Buck posting losses against the Euro, British pound, and Swiss franc.

For Greenback bulls, today’s pressure is nothing new. Early June has been difficult, with values across the majors beginning to enter corrective territory. Even with next week’s FED meeting and rate hike rapidly approaching, a revaluation of the USD is underway.

A Look At The USD Index

June USD Index futures are trading at a critical technical level on the daily time frame. Values are off of late May highs and trending lower. In the event that the bears dominate Friday’s session, a test of the daily uptrend’s technical validity may come to fruition.

Here are the levels to keep an eye on for the remainder of the trading day:

Support(1): Daily SMA, 93.320
Support(2): Bollinger MP, 93.310
Support(3): 38% Retracement, 92.675

Overview: Next week is set up to be a pivotal one for the Greenback. The markets are expecting a FED rate hike, with the CME FedWatch index showing a 91.0% chance of this happening next Wednesday.

Also, Monday’s meeting between Donald Trump and Kim Jong Un will heighten awareness toward commodity and safe-haven pricing. The USD will be fundamentally impacted by both events.

From a trading standpoint, the USD remains in a technical uptrend. The index has not dropped below the 38% retracement of the intermediate-term bullish move on the daily chart, 92.675. Although the recent sell-off of the Buck is significant, the prevailing uptrend is still technically valid.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

Related Articles

Ethereum Price Prediction Soars—$265M Liquidated, ETH Hits $2,331

3 hours ago

Save

Silver Eyes $33.24 Breakout as U.S.-China Trade Talks Heat Up

7 hours ago

Save

Oil Prices Eye $62 as U.S.-China Tariff Talks Boost Sentiment

7 hours ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments