US Dollar Index (DX) Futures Technical Analysis – April 25, 2017 Forecast

June U.S. Dollar index futures are under pressure on Tuesday. The market is trading inside yesterday’s range, but towards the lower end of the range, indicating investor indecision and impending volatility.

Technical Analysis

The main trend is down according to the daily swing chart. Momentum is also trending lower. Yesterday’s low at 98.70 came in slightly above the March 27 main bottom at 98.67. Taking out this level will reaffirm the downtrend. We likely to also see an acceleration to the downside if this bottom fails with no target at this time.

Today is the tenth day down from the 101.265 main top which means the index is in the window of time for a potentially bullish closing price reversal bottom.

On the downside, support is a major Fibonacci level at 98.81. On the upside, the major target is the 50% level at 99.75.

Forecast

Based on the current price at 98.85, the first target on the downside is the Fibonacci level at 98.81. This is followed by a steep downtrending angle at 98.77. Crossing to the weak side of this angle will put the index in an extremely weak position.

The selling pressure under 98.77 should be strong enough to take out yesterday’s low at 98.70 and the main bottom at 98.67.

Holding 98.81 will indicate that buyers are still coming in to defend the bottom at 98.67. This could generate enough upside momentum to challenge the angle at 98.98.

Overtaking 98.98 will indicate the buying is getting stronger. This could drive the market into the next uptrending angle at 99.30.

Look for an acceleration to the upside if 99.30 is taken out with conviction. If strong buying volume comes in on this move then look for the rally to possibly extend into 99.75.