US Dollar Index (DX) Futures Technical Analysis – August 17, 2015 Forecast

September U.S. Dollar Index futures are recovering after last week’s sell-off. China’s central bank is helping to stabilize the yuan following the biggest devaluation in two decades.

Technically, the main trend turned down last week. Uncertainty over whether the Fed will raise rates in September helped drive the Greenback lower. The dollar was also driven lower by intervention by the People’s Bank of China.

The main range is 93.30 to 98.425. Its 50% level is 95.86. Last week’s sell-off stopped slightly above this level at 95.945.

Based on the current price action, support lines up today at 96.37, 95.93 and 95.86. The latter is a possible trigger point for an acceleration into a Fibonacci level at 95.26.

The first upside target is a steep downtrending angle at 96.93. The next target is a price cluster formed by an uptrending angle at 97.18 and a short-term pivot at 97.185. Overtaking the price cluster could trigger an acceleration into a major 50% level at 97.46. The next target over this level is a downtrending angle at 97.68.

The current chart pattern suggests a possible sideways trade today. Look for a bullish tone to develop on a sustained move over 96.93 and a bearish tone to develop on a sustained move under 96.37.