US Dollar Index (DX) Futures Technical Analysis – August 21, 2017 Forecast

September U.S. Dollar Index futures are trading slightly higher shortly before the regular session opening. The range is tight and volume is below average. Barring any unexpected news, the market could remain range bound all session.

There are no major economic events today so there is nothing to guide traders.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top at 94.055 on August 16.

A trade through 94.055 will negate the chart pattern and signal a resumption of the uptrend. This could trigger a rally into the next main top at 94.115, followed by a series of retracement levels.

A trade through 93.83 will change the main trend to down with 92.39 the next major target.

Forecast

Based on the current price at 93.385 and the earlier price action, look for a bullish bias to develop on a sustained move over 93.44. The daily chart shows there is room to the upside with potential targets at 94.055, 94.115 and 94.175.

On the downside, the initial targets are 93.30 and 93.22. A sustained move under 93.22 will signal the presence of sellers. This could drive the market into 93.06 then 92.83.

Basically, look for a bullish tone on a sustained move over 93.44 and a bearish tone under 93.22. Holding inside this range will likely lead to a choppy, two-sided trade.