US Dollar Index (DX) Futures Technical Analysis – August 3, 2017 Forecast

September U.S. Dollar Index futures are trading slightly higher and inside yesterday’s range. The price action suggests investor indecision and impending volatility. The market is also mirroring the movement of the Euro. Weakness in the Australian and New Zealand Dollars is also helping to underpin the Greenback. The GBP/USD is also under pressure. This may lend some support to the dollar index.

Technical Analysis

The main trend is down according to the daily swing chart. A trade through 92.390 will signal a resumption of the downtrend. Traders should watch for a possible acceleration to the downside if this bottom fails because the next major target doesn’t come in until 91.45.

The new short-term range is 94.115 to 92.39. Its retracement zone at 93.25 to 93.46 is the primary upside target. A downtrending angle passes through this zone at 93.37, making this a valid upside target.

Taking out 93.46 will indicate the buying is getting stronger with the next likely target angles 93.74 and 93.84.

Forecast

The price action suggests to expect volatility.

If sellers take control then they’ll go after 92.555 then 92.390. We could see an acceleration to the downside if 92.39 is taken out with conviction.

If buyers take control then they may take a run at 93.25, 93.37 and 93.46.