US Dollar Index (DX) Futures Technical Analysis – March 6, 2018 Forecast
March U.S. Dollar Index futures are trading lower shortly before the U.S. opening. Pressure is coming from across the board with the dollar losing ground to the Euro, Japanese Yen and Australian Dollar.
The index rallied on Monday as tensions over a possible trade war eased. There was a slight relief rally in the equities market and risk appetite increased, however, going forward investors are likely to continue to adjust risk accordingly, depending on how the news about the tariffs and retaliation develops.
Daily Technical Analysis
The main trend is up according to the daily swing chart, however, momentum shifted to the downside with the formation of the closing price reversal top on March 1.
A trade through 90.885 will negate the closing price reversal top and signal a resumption of the uptrend.
A move through 89.425 will change the minor trend to down.
On the upside, the major resistance is the retracement zone at 90.99 to 91.66.
The main range is 92.36 to 88.15. Its retracement zone at 90.26 to 90.75 is also resistance.
The short-term range is 88.15 to 90.885. Its retracement zone at 89.52 to 89.19 is the primary downside target. Since the main trend is up, buyers are likely to show up on a test of this zone. They are going to try to form a potentially bullish secondary higher bottom.
Daily Technical Forecast
Based on the early trade, the direction of the dollar index today is likely to be determined by trader reaction to the downtrending Gann angle at 89.92.
A sustained move over 89.92 will indicate the presence of buyers. This could lead to a test of the resistance cluster at 90.26. The short-term direction of this area is likely to determine the near-term direction of the market.
Overcoming 90.26 could trigger an acceleration to the upside with potential targets coming in at 90.75, 90.89 and 90.99.
A sustained move under 89.92 will signal the presence of sellers. This could lead to a test of the uptrending Gann angle at 89.65. This is followed closely by the short-term retracement zone at 89.52 to 89.19.