US Dollar Index (DX) Futures Technical Analysis – February 22, 2017 Forecast

March U.S. Dollar index futures are trading higher shortly before the regular session opening. The market is once again getting support from a weaker Euro. However, later in the session, traders are likely to react to the release of the latest Fed minutes from their monetary policy meeting in February at 1900 GMT so expect to see some volatility.

Technical Analysis

The main trend is up according to the daily swing chart. A trade though 101.75 will negate the closing price reversal top and signal a resumption of the uptrend. The next two targets are the minor top at 102.960 and the main top at 103.815.

A trade through 100.40 will be the first sign of weakness and a move through 99.195 will turn the main trend to down.

The main range is 103.815 to 99.195. Its retracement zone at 101.505 to 102.050 is the primary upside target. It provided resistance last week when the index topped at 101.750. The index is currently testing this zone.

The short-term range is 99.195 to 101.75. Its retracement zone at 100.473 to 100.171 is the primary downside target. This zone provided support last week when the index successfully tested 100.40.

Forecast

Based on the current price at 101.590, the direction of the index the rest of the session will be determined by trader reaction to the long-term downtrending angle at 101.630 and the 50% level at 101.505.

Look for the upside bias to continue on a sustained move over 101.630. This should lead to a test of the reversal top at 101.750. This is followed by the Fibonacci level at 102.050. This level is the trigger point for a possible acceleration into another long-term downtrending angle at 102.720.

A sustained move under 101.505 will signal the presence of sellers. This could create enough downside momentum to test the uptrending angle at 100.95. This angle could provide support on the first test, but if it fails then look for a possible acceleration into the 50% level at 100.473.

Look for an upside bias on a sustained move over 101.630 and a downside bias on a sustained move under 101.505.