US Dollar Index (DX) Futures Technical Analysis – January 11, 2018 Forecast

March U.S. Dollar Index futures are trading flat shortly before the release of the U.S. producer price index report. Traders are looking for an increase of 0.2%. A stronger number could be bullish for the U.S. Dollar because it will help the Fed build its case for raising interest rates.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The market has already recovered from yesterday’s spike to the downside.

A trade though 92.36 will signal a resumption of the uptrend. A move through 91.51 and 91.47 will change the main trend to down. If the downside momentum is strong enough, we could even see a move into 91.00.

The major retracement zone at 92.24 to 92.72 is resistance.

The short-term range is 93.825 to 91.47. If a rally gains traction, we could see a move into its retracement zone at 92.65 to 92.93.

Daily Technical Forecast

Based on the early price action, the direction of the U.S. Dollar Index is likely to be determined by trader reaction to the Fibonacci level at 92.24.

A sustained move under 92.24 will signal the presence of sellers. This could drive the index into the long-term uptrending Gann angle at 92.02. This angle is a possible trigger point for an acceleration into 91.51 then 91.47.

A sustained move over 92.24 will indicate the presence of buyers. This could trigger a move into a pair of downtrending Gann angles at 92.56 and 92.58. This is followed by a pair of 50% levels at 92.65 and 92.72.