US Dollar Index (DX) Futures Technical Analysis – December 20, 2017 Forecast

March U.S. Dollar Index futures are trading nearly flat on Wednesday. The index is trading inside Monday’s wide range, suggesting investor indecision and impending volatility. This is likely because of relief that the U.S. tax reform debate is almost over and because of thin, pre-holiday volume.

Daily Technical Analysis

The main trend is down according to the daily swing chart, however, momentum is trending lower. A trade through 92.86 will change the main trend to down.

The short-term range is 92.265 to 93.825. Its retracement zone at 93.045 to 92.761 is currently being tested. This zone stopped the selling at 92.86 last week. Trader reaction to this zone will set the tone of the market over the near-term. Buyers may come in to form a secondary higher bottom. Sellers are trying to change the trend to down.

Daily Technical Forecast

Based on the early price action, the direction of the index today will be determined by trader reaction to the Gann angle price cluster at 93.08.

A sustained move under 93.08 will signal the presence of sellers. Holding below 93.045 will indicate the selling pressure is getting stronger. This could trigger an acceleration into the next support cluster at 92.86. Not only will the trend change to down if this level fails, but we could see a further drop into the next uptrending Gann angle at 92.67.

A sustained move over 93.08 will indicate the presence of buyers. The daily chart indicates there is plenty of room to the upside with the next target cluster coming in at 93.445 to 93.45.