US Dollar Index (DX) Futures Technical Analysis – January 30, 2017 Forecast

March U.S. Dollar Index futures are trading higher after early session weakness. Today’s intraday upside momentum has put the market in a position to challenge Friday’s high.

Technical Analysis

The main trend is down according to the daily swing chart. However, momentum has shifted to the upside with the formation of a new main bottom at 99.765. A trade through 100.81 will indicate that the upside momentum is increasing. A trade through 99.765 will signal a resumption of the downtrend with 99.25 the next target.

The short-term range is 99.765 to 100.81. Its retracement zone at 100.29 to 100.16 provided support earlier in the session.

The main range is 99.25 to 103.815. Its retracement zone at 100.995 to 101.53 is the next upside target.

The intermediate range is 103.815 to 99.765. If buyers can take out 101.53 then look for the rally to extend into its retracement zone at 101.78 to 102.27.

Forecast

Based on the current price at 100.75 and the early price action, the direction of the index today is likely to be determined by trader reaction to Friday’s high at 100.81.

Taking out 100.81 will indicate the buying is getting stronger. This could lead to a quick move into 100.995. This is the trigger point for an acceleration into a resistance cluster at 101.53 to 101.57.

On the downside, a support cluster comes in at 100.31, 100.29 and 100.27. If this area fails then look for a labored break into 100.16, 100.02 and 99.89. The latter is the last short-term support angle before a major uptrending angle at 99.78 and the main bottom at 99.765.

Based on the current intraday momentum, watch for a move into 100.81. Trader reaction to this price will tell us if the buying is getting stronger, or if sellers are defending the trend.