US Dollar Index (DX) Futures Technical Analysis – February 27, 2017 Forecast

March U.S. Dollar Index futures are called steady shortly before the cash market opening. Volume and volatility are expected to below average as investors prepare for Tuesday night’s speech from President Trump before a joint session of Congress.

Technical Analysis

The main trend is up according to the daily swing chart. However, momentum has been trending lower since the formation of the closing price reversal top on February 15 at 101.75.

A trade through 101.75 will negate the reversal top and signal a resumption of the uptrend.

The minor trend is also higher. A move through 101.715 will signal a resumption of the uptrend. A trade through 100.40 will change the minor 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 stopped the last two rallies at 101.715 and 101.750.

The short-term range is 99.195 to 101.750. Its retracement zone is 100.473 to 100.171. This zone is the primary downside target.

Forecast

Based on Friday’s close at 101.090, the direction of the market today is likely to be determined by trader reaction to the uptrending angle at 101.32. Overtaking this angle will put the index in a positon to challenge a pair of potential resistance points at 101.44 and 101.505. The index could begin to expand to the upside if buyers can overtake 101.505.

A failure to overcome 101.32 will signal the presence of sellers. The daily chart is wide open to the downside with the next target Friday’s low at 100.64. This is followed by the short-term retracement zone at 100.473 to 100.171. Since the main trend is up, we could see a technical bounce on the first test of this zone.

Watch the price index and read the order flow at 101.32 today. Trader reaction to this angle will set the tone for the day.