US Dollar Index (DX) Futures Technical Analysis – August 24, 2017 Forecast

September U.S. Dollar Index futures are trading slightly higher shortly before the regular session opening. The market is trading inside yesterday’s range, suggesting investor indecision and impending volatility.

Traders will get a chance to respond to a few U.S. economic reports today, but the primary focus will be on tomorrow’s speeches by ECB President Mario Draghi and Fed Chair Janet Yellen on Friday at the Jackson Hole central bankers’ summit.

Technical Analysis

The main trend is up according to the daily swing chart. A trade through 92.92 will be a sign of weakness. A move through 93.83 will change the main trend to down. The next major downside target is the 93.39 main bottom.

A trade through 94.055 will signal a resumption of the uptrend. This could lead to a test of the next main top at 94.115.

The main range is 94.115 to 92.39. Its 50% level or pivot is 93.25. This price is controlling the direction of the market. Currently, the index is below the pivot, giving the market a downside bias.

The short-term range is 94.055 to 92.92. Its retracement zone at 93.49 to 93.62 is the primary upside target. This zone has been acting like resistance.

Forecast

Based on the current price at 93.14 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the downtrending angle at 93.31.

A sustained move under 93.31 and the pivot at 93.25 will signal the presence of sellers. The daily chart is open to the downside with targets, the low at 92.92, the uptrending Gann angle at 92.89 and the main bottom at 92.83.

Taking out 92.83 could trigger an acceleration to the downside with the next target angle coming in at 92.14. This is the last potential support angle before the 92.39 main bottom.

A sustained move over 93.31 will indicate the presence of buyers. This could lead to a test of the uptrending angle at 93.39. Overcoming this angle is likely to lead to a test of the short-term retracement zone at 93.49 to 93.62.