US Dollar Index (DX) Futures Technical Analysis – January 18, 2018 Forecast

March U.S. Dollar Index futures are trading unchanged after giving up all of its earlier gains. A rally in the Euro is contributing the most to the weakness.

Mixed U.S. economic data didn’t help the cause either. Building permits came in slightly better than expected at 1.30 million units, but housing start severely missed the estimate with a reading of 1.19 million units. Traders were looking for an increase of 1.28 million units.

The Philly Fed Manufacturing Index also disappointed with a reading of 22.2, below the 24.9 estimate. The bright spot was weekly unemployment claims which came in at 220K, lower than the 250K estimate.

Daily Technical Analysis

The main trend is down according to the daily swing chart. The main trend will turn up on a move through 92.36.

A trade through 89.96 will signal a resumption of the downtrend.

The resistance if a pair of old bottoms at 90.68 and 91.00. The first level stopped the rally earlier today.

The main range is 92.36 to 89.96. If a rally does gain traction then its retracement zone at 91.16 to 91.44 will become the primary upside target. Sellers are likely to show up on a test of this zone since the main trend is down.

Daily Technical Forecast

Based on the early trade, resistance is 90.68, followed closely by a downtrending Gann angle at 90.86 and 91.00.

On the downside, the first support is a minor uptrending Gann angle at 90.21, followed by 90.09 and 90.02. The latter is the last potential support angle before the 89.96 main bottom.

The direction of the index will be determined by the direction of the Euro.