US Dollar Index (DX) Futures Technical Analysis – September 1, 2016 Forecast

September U.S. Dollar Index futures are trading flat ahead of a number of reports on Thursday and tomorrow’s major U.S. Non-Farm Payrolls report. Volume is likely to be low, making the market susceptible to wild swings, but no particular direction.

Today’s major reports include weekly unemployment claims at 1230 GMT and the ISM Manufacturing PMI at 1400 GMT. Unemployment claims are expected to come in at 265K. ISM Manufacturing PMI is expected to post a reading of 52.0.

The next key report is Revised Nonfarm Productivity at 1230 GMT with an estimate of -0.6%

Minor reports include Challenger Job Cuts, Revised Unit Labor Costs, Final Manufacturing PMI, Construction Spending and ISM Manufacturing Prices.

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

The main range is 97.62 to 94.05. Its retracement zone is 95.835 to 96.26. The index is currently trading inside the retracement zone. Trader reaction to this zone will likely determine the near-term direction of the Dollar Index.

The short-term range is 94.05 to 96.25. Its retracement zone at 95.16 to 94.89 is the new downside target.

Look for an upside bias today on a sustained move over 96.26 with the next target angle at 96.75.

Look for a downside bias on a sustained move under 95.83 with the next angle coming in at 95.30.

Holding inside 96.26 to 95.83 will indicate a neutral market.