US Dollar Index (DX) Futures Technical Analysis – February 12, 2018 Forecast

March U.S. Dollar Index futures are trading lower early Monday, but inside the wide range from February 8. This suggests investor indecision and impending volatility.

Daily Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is flat in response to the formation of the closing price reversal top on February 8. A trade though 89.895 will confirm the closing price reversal top and signal a shift in momentum to down.

A trade through 90.455 will negate the closing price reversal top and signal a resumption of the uptrend. This could lead to a quick test of the next main top at 90.765.

The intermediate range is 92.36 to 88.255. Its retracement zone at 90.31 to 90.79 is currently providing resistance.

The main range is 93.825 to 88.255. If the rally continues then its retracement zone at 91.04 to 91.70 will become the primary upside target.

The short-term range is 88.385 to 90.455. If the selling pressure continues then look for a break into its retracement zone at 89.42 to 89.18.

Daily Technical Forecast

Based on the early trade, the direction of the dollar index is likely to be determined by trader reaction to the steep uptrending Gann angle at 90.14.

A sustained move over 90.14 will indicate the presence of buyers. This could lead to a test of 90.31 then 90.455.

Taking out 90.455 could drive the index into a loose cluster of numbers at 90.765, 90.79, 90.92 and 91.04.

A sustained move under 90.14 will signal the presence of sellers. Taking out 89.895 will confirm the closing price reversal top. This could trigger an acceleration into 89.42, 89.26 and 89.18.

We’re either going to signal a resumption of the uptrend on a move through 90.455, or confirm the closing price reversal top on a trade through 89.895.