USD Index

USD Index Futures Rally Above 96.000

Posted Wednesday, February 6, 2019 by
Shain Vernier • 1 min read

February has started with a bang for USD Index futures. Values are above the 96.000 handle and the post-FED slump appears to be over. At press time, the March USD Index is poised to post its fifth consecutive positive close. With no primary market movers scheduled until next week, the Greenback’s bullish rally may extend by Friday’s closing bell.

At 7:00 PM EST this evening, U.S. FED Chairman Jerome Powell is holding an informational town hall meeting with a group of educators. The discussion is to cover the basic function of the FED, as well as assorted economic and financial issues. Town hall-style conversations are often unscripted and open the floor to participants for questions and inquiries. While it is unlikely that Powell will move markets during this engagement, enhanced volatility is still possible.

March USD Index Futures: Technical Outlook

The March USD Index has been on the bull ever since last Wednesday’s FED Announcements drew to a close. A dovish Jerome Powell prompted an exodus from the Greenback on 30 January. Since then, it has been all systems go for the USD.

March USD Index Futures (DX), Daily Chart
March USD Index Futures (DX), Daily Chart

For the next 24 hours, here are two levels to keep an eye on:

  • Resistance(1): Swing High, 96.375
  • Support(1): Bollinger MP, 95.655

Overview: At the moment, it appears that the Swing High (96.375) may be challenged by the weekend. In the event that it is, a short trade may set up for late-Friday or early next week.

There is no arguing that the fundamentals are soft moving forward for the USD. However, the daily trend is up and forex sentiment toward the Greenback is improving. Until the release of January’s FOMC Minutes on February 20th or Q4 U.S. GDP the following week, the dollar is in a great position to gain market share for the near-term.

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