US Dollar Index (DX) Futures Technical Analysis – February 2, 2018 Forecast

March U.S. Dollar Index futures are trading higher shortly before the release of the U.S. Non-Farm Payrolls report. A bullish report, especially the Average Hourly Earnings number, could trigger a huge short-covering rally. The index will also be supported by a weaker Euro.

Daily Technical Analysis

The main trend is down according to the daily swing chart. Aggressive counter-trend buyers are trying to form a potentially bullish secondary higher bottom.

A trade through 82.255 will signal a resumption of the downtrend. A move through 89.48 will change the main trend to up.

The short-term pivot is 88.85.

The intermediate retracement zone is 89.51 to 89.81 and the main retracement zone is 90.31 to 90.79.

Daily Technical Forecast

Based on the early trade, the direction of the dollar index is likely to be determined by trader reaction to the short-term pivot at 88.85.

A sustained move under 88.85 will signal the presence of sellers. The next two minor Gann angles come in at 88.63 and 88.44. The latter is the last potential support angle before the 88.255 main bottom.

If 88.255 fails as support then look for the selling to extend into 88.067. This is the trigger point for an acceleration to the downside.

A sustained move over 88.853 will indicate the presence of buyers. Minor resistance angles come in at 89.11 and 89.39.

The market is going to have to overcome 89.81 in order to create the upside momentum needed to accelerate to the upside.