US Dollar Index (DX) Futures Technical Analysis – April 8, 2015 Forecast

June U.S. Dollar Index futures are trading lower shortly before the cash market opening. The market continues to toy with a series of retracement levels. Clearly, trader reaction to this area will set the tone for the day and perhaps over the near-term. A pair of 50% levels come in at 97.775 and 98.04. A Fibonacci level comes in at 98.45.

The uptrending angle that is acting like resistance is at 98.16. The downtrending angle is at 98.54. These angles are surrounding the Fib level at 98.45, forming a very loose resistance cluster.

The daily chart indicates there is plenty of room to the upside if 98.54 is taken out with conviction. The targets above this level are 99.25 and 99.66.

A sustained move under 97.775 will be a sign that sellers are coming in. This could trigger enough downside momentum to take the index into an angle at 96.35. This is followed by angles at 95.62 and 95.44.

Based on the current price action, it looks as if the early tone of the session will be determined by trader reaction to 97.775. Look for increased volatility late in the session with the release of the Fed minutes at 2:00 p.m. ET.