US Dollar Index (DX) Futures Technical Analysis –Threatening Last Week’s Low at 92.75

March U.S. Dollar Index futures settled lower on Tuesday. Currency trading volume was light as London and many major financial centers remained closed after the Christmas holiday. We could see a quiet market all week. Volume is not expected to bounce back until after the start of the new year.

The dollar could bounce back at the start of 2018 in the aftermath of the biggest overhaul of the U.S. tax code. In other news, speculators reduced their net short dollar bets last week ahead of the passage of the tax legislation, according to Commodity Futures Trading Commission data released on Friday.

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 92.75 will signal a resumption of the downtrend. The next major downside target is the December 1 main bottom at 92.265.

The main range is 92.265 to 93.825. Its retracement zone is 92.86 to 93.05. After consolidating in this zone for three days, the index closed below it, helping to contribute to the downside bias.

Early in the session, the market found resistance on a downtrending Gann angle at 92.93. This angle has been guiding the market lower since December 18.

Later in the session, the index found support on a long-term uptrending Gann angle at 92.77. If this angle fails along with last week’s low at 92.75, we could see an acceleration to the downside with the next target angle coming in at 92.52.