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June U.S. Dollar Index futures are trading lower and in a tight range. The market is trading inside yesterday’s range which suggests investor indecision and impending volatility. Traders may be waiting for today’s economic data which includes the producer inflation reports and weekly unemployment claims. On Friday, traders will get the opportunity to react to the latest data on retail sales and consumer inflation.Daily June U.S. Dollar IndexTechnical AnalysisThe main trend is up according to the daily swing chart. The trend turned up earlier in the week, but there hasn’t been much of a follow-through to the upside.A trade through 99.605 will signal a resumption of the uptrend. A trade through 98.355 will change the main trend to down.The main range is 101.265 to 98.355. Its retracement zone at 99.81 to 100.15 is the primary upside target. A pair of angles cross inside this zone at 99.86 and 99.89, making them a valid upside target also.The new short-term range is 98.355 to 99.605. If there is a short-term correction then look for a pullback into its retracement zone at 98.98 to 98.83.ForecastThe index is currently trading at 99.47. This puts it between support and resistance, meaning today’s price action will either be driven by trend-trader buying or counter-trend selling.If buyers come in the look for a breakout over 99.605. This could create enough upside momentum to challenge the potential resistance cluster at 99.81, 99.86 and 99.89.If counter-trend sellers take control then look for a pullback into the up trending angle at 99.11. If this fails then look for a move into the short-term retracement zone at 98.98 to 98.83.
