US Dollar Index (DX) Futures Technical Analysis – August 12, 2015 Forecast

September U.S. Dollar Index futures broke sharply early in the session on Tuesday, but the market rebounded to close higher after testing an uptrending Gann angle. It wasn’t a major reversal, however, since the market had been down only two days from a top. Overnight, there was no follow-through to the upside so the chart pattern wasn’t confirmed. This indicates that sellers are still in control.

Based on the close at 97.33, the resistance today is a major 50% level at 97.46. This is followed by downtrending angles at 97.68, 98.05 and 98.24. A pair of long-term uptrending angles come in at 98.18 and 98.43. The market will have to overcome these angles to put it in a bullish position.

On the downside, the first target is an uptrending angle at 96.99. This angle provided support on Tuesday. Crossing to the weak side of a downtrending angle at 96.93 will put the market in a bearish position. Taking out 96.905 will likely trigger an acceleration to the downside with the next target a main bottom at 96.36. A trade through this level will turn the main trend to down on the daily chart.

The next targets under 96.36 are an uptrending angle at 96.27 and a major 50% target at 95.86.

Based on the current price action, the direction of the market today is likely to be determined by trader reaction to the angle which stopped the break on Tuesday. This angle is at 96.99 today. Look for a bearish tone to develop on a sustained move under this price.