US Dollar Index (DX) Futures Technical Analysis – October 6, 2017 Forecast

December U.S. Dollar Index futures are trading flat-to-slightly higher shortly before the regular session opening and the release of the U.S. Non-Farm Payrolls report.

A stronger-than-expected report could trigger a surge to the upside. We just don’t know how much of the report has already been priced into the market. Sometimes, bullish investors use the reports to take profits in a “buy the rumor, sell the fact” situation.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The uptrend was reaffirmed earlier today when buyers took out the previous high at 93.84.

The index is up 12 days from the last main bottom so technically, the index is in the window of time for a potentially bearish closing price reversal top.

The market is currently trading on the strong side of a major 50% level at 93.43. This is support.

The next upside target is the price cluster at 94.05. This price is a major pivot. Overcoming this level and sustaining the rally will put the market in a bullish position with the Fibonacci level at 94.815 the next likely upside target.

Daily Forecast

Based on the current price at 93.835 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to 94.05.

A sustained move over 94.05 will indicate the presence of buyers. This could trigger a rally into a steep uptrending angle at 94.22.

Crossing to the strong side of the angle at 94.22 will put the index in a bullish position with the next major targets 94.815 to 94.87.

The inability to overcome 94.05 will signal the presence of sellers. The next target is 93.435.

Look for sellers to hit the index under 93.435 with minor targets at 93.085 and 92.805. The major support angle is at 92.72.