US Dollar Index (DX) Futures Technical Analysis – December 14, 2017 Forecast

March U.S. Dollar Index futures are trading nearly flat on Thursday after yesterday’s steep sell-off. On Wednesday, the Fed raised interest rates as expected, but it also left its forecast for future rate hikes unchanged. This news triggered a wave of selling pressure which dropped the index 0.72%.

Today, the direction of the index will be determined by the movement in the Euro, which makes up about 57% of the dollar index. The direction of the Euro will be dictated by the European Central Bank’s monetary policy decision and the comments from ECB President Mario Draghi.

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 93.825 will signal a resumption of the uptrend. A move through 92.265 will change the main trend to down.

The main range is 94.760 to 92.130. Its retracement zone at 93.445 to 93.755 stopped the rally earlier in the week.

The short-term range is 92.265 to 93.825. Its retracement zone at 93.045 to 92.86 is currently being tested. If this zone fails then momentum will shift to the downside.

Daily Technical Forecast

Based on the current price at 92.98 and the earlier price action, the direction of the index today will be determined by trader reaction to the short-term 50% level at 93.045.

A sustained move under 93.045 will signal the presence of sellers. This is followed by a short-term Fibonacci level at 92.86 and a short-term uptrending angle at 92.83. The latter is the trigger point for an acceleration into the next uptrending angle at 92.55. This is the last support angle before the 92.265 bottom.

Overtaking 93.045 and sustaining the rally will indicate the presence of buyers. This could trigger a rally into the steep downtrending angle at 93.33.

Basically, look for a bullish tone to develop on a sustained move over 93.045 and for a bearish tone to develop on a sustained move under 92.83.