The safe-haven U.S. Dollar is trading higher against a basket of major currencies on Monday as investors grew nervous about a raging coronavirus variant that could threaten the outlook for a global economic recovery. The greenback jumped even as the benchmark U.S. 10-year Treasury yield dropped to a more than five-month low of 1.176%.
At 18:56 GMT, September U.S. Dollar Index futures are trading 92.840, up 0.153 or +0.17%.
The Delta variant of COVID-19 is now the dominant strain worldwide, accompanied by a surge of deaths around the United States almost entirely among unvaccinated people, U.S. officials said on Friday.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier in the session when buyers took out the last main top at 92.840. A trade through 92.075 will change the main trend to up.
The minor trend is also up. A trade through 92.275 will change the minor trend to down. This will shift momentum to the downside.
The index is also trading on the strong side of a pair of long-term retracement zones at 92.495, 91.950, 91.850 and 91.490, making them support. The short-term pivot at 92.280 is also support.
Daily Swing Chart Technical Forecast
The direction of the September U.S. Dollar Index into the close on Monday is likely to be determined by trader reaction to 92.690.
A sustained move over 92.690 will indicate the presence of buyers. If this move continues to generate enough upside momentum then look for a possible retest of the intraday high at 93.050. This is a potential trigger point for an acceleration into the March 31 main top at 93.430.
A sustained move under 92.690 will signal the presence of sellers. If this move creates enough downside momentum then look for a possible break into 92.495.