US Dollar Index (DX) Futures Technical Analysis – February 8, 2018 Forecast

A weaker Euro and higher Treasury yields are helping to give the March U.S. Dollar Index a boost early Thursday. However, the daily chart indicates it still faces a mountain of potential resistance areas before we’ll see an acceleration to the upside. So at this time, the buying is likely to be slow and steady if shorts continue to cover and buyers continue to chew through resistance.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next upside target is 90.765. This is a potential trigger point for an acceleration to the upside since the next target top doesn’t come in until 92.36.

The short-term range is 90.765 to 88.255. Its retracement zone is 89.81 to 89.51. The index is trading on the strong side of this zone, giving it an upside bias. This zone is new support.

The intermediate range is 92.36 to 88.255. Its retracement zone at 90.31 to 90.79 is currently being tested.

The main range is 93.825 to 88.255. Its retracement zone at 91.04 to 91.70 is the primary upside target.

Daily Technical Forecast

Based on the early trade, the direction of the index the rest of the session is likely to be determined by trader reaction to the 50% level at 90.31.

A sustained move over 90.31 will indicate the presence of buyers. This could trigger a surge into a resistance cluster at 90.765 to 90.79. This is followed by a second resistance cluster at 91.04 to 91.05.

A sustained move under 90.31 will signal the presence of sellers. This could drive the index back into a Fibonacci level at 89.81, an uptrending Gann angle at 89.64 and a 50% level at 89.51.