US Dollar Index (DX) Futures Technical Analysis – June 22, 2017 Forecast

September U.S. Dollar Index futures are trading flat shortly before the regular session opening. The market is trying to recover from early session weakness. The dollar is under pressure from falling U.S. Treasury yields and worries that weak inflation will keep the Fed from raising rates later in the year.

Technical Analysis

The main trend is up according to the daily swing chart. Breaking back below the last two main tops at 97.48 and 97.225 may be an indication that the last rally may have been short-covering rather than actual buying.

The main range is 99.565 to 96.02. Its retracement zone at 97.79 to 98.21 is the primary upside target.

The new short-term range is 96.02 to 97.515. If the selling pressure continues then look for a further break into its retracement zone at 96.77 to 96.59.

Forecast

The market is trading on the weak side of a steep uptrending angle at 97.52. This is signaling the presence of sellers.

If the selling pressure continues then look for a pullback into the support cluster at 96.77.

Overcoming the angle at 97.52 will indicate the return of buyers. This could drive the index into a cluster of potential resistance at 97.69, 97.79 and 97.84.

The market has room to the downside. Look for weakness as long as the index remains under 97.52.