US Dollar Index (DX) Futures Technical Analysis – August 24, 2016 Forecast

September U.S. Dollar Index futures are trading slightly higher shortly before the regular session opening. The dollar is picking up a bid early today as investors shift their bets towards a hawkish speech by Fed Chair Janet Yellen at the Jackson Hole, Wyoming central bankers’ conference on Friday.

Earlier in the week, the dollar was supported by hawkish statements from a high-ranking Fed official over the week-end. Yesterday, the Greenback found support after the release of better-than-expected New Home Sales data. Today, traders will have the chance to react to the latest data on Existing Home Sales. This report is expected to show a slight decline from 5.57 million units to 5.52 million units.

Technically, the main trend is down according to the daily swing chart. The trend will turn up on a trade through 96.50. The downtrend will resume on a move through 94.05.

The nearest support angle comes in at 94.40. If this fails as support then look for the selling to continue into the minor bottom at 94.05. This is a potential trigger point for a break into the next uptrending angle at 93.71. This is the last potential support angle before the 93.025 main bottom.

On the upside, the first targets are a main Fibonacci level at 94.78 and a downtrending angle at 94.87. This is a possible trigger point for an acceleration into 95.28 to 95.32.

There are two potential breakout areas at 94.87 an 94.40, however, because of the light volume, you have to be careful about buying strength and selling weakness. This also makes the market vulnerable to wild swings in either direction.