US Dollar Index (DX) Futures Technical Analysis – January 24, 2017 Forecast

March U.S. Dollar Index futures are trading higher shortly before the regular session opening. The market traded slightly lower shortly after the opening but then mounted a rebound rally strong enough to put it in a position to post a potentially bullish closing price reversal bottom. We won’t know for sure until the close.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum appears to be getting ready to shift to the upside. This will occur following a close over 100.130 and a subsequent follow-through rally on Wednesday.

A trade through today’s intraday low at 99.885 will signal a resumption of the selling. This may create enough downside momentum to eventually challenge the December 8 main bottom at 99.250.

The main range is 99.25 to 103.815. Its retracement zone at 100.995 to 101.535 is the first upside target. If a short-term range forms between 103.185 and 99.885 then its retracement zone at 101.850 to 102.315 will become the next upside target.

Forecast

Based on the current price at 100.335, the direction of the index today is likely to be determined by trader reaction to the pair of angles at 100.315 and 100.190.

A sustained move over 100.315 will signal the presence of buyers. If enough buyers come in on the move then look for the rally to possibly extend into the main Fibonacci level at 100.995.

A sustained move under 100.190 will indicate the presence of sellers. This could create the momentum needed to test the intraday low at 99.885 and the uptrending angle at 99.72. This is the last potential support angle before the 99.25 main bottom.

Look for an upside bias to develop on a sustained move over 100.315 and a downside bias on a sustained move under 100.190.