US Dollar Index (DX) Futures Technical Analysis – February 24, 2017 Forecast
March U.S. Dollar Index futures are trading lower shortly before the regular session opening. Traders are reacting to comments from U.S. Treasury Secretary Steve Mnuchin who said on Thursday that if may take until August to get President Trump’s tax reform plan passed into law. This news helped drive down U.S. Treasury yields which made the dollar a less-desirable asset.
Technical Analysis
The main trend is up according to the daily swing chart. However, momentum appears to be shifting to the downside. A trade through 101.75 will signal a resumption of the uptrend.
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A trade through 100.40 will turn the minor trend to down. The main trend will turn down on a move through 99.195.
The main range is 103.815 to 99.195. Its retracement zone is 101.505 to 102.050. This zone is the primary upside target. It provided resistance when the recent rallies stopped at 101.715 and 101.750.
The short-term range is 99.195 to 101.750. Its retracement zone at 100.473 to 100.171 was the primary downside target. Since the main trend is up, we could see a technical bounce on the first test of this zone.
Forecast
Based on the current price at 100.870 and the earlier price action, the nearest resistance is 101.200, followed by a resistance cluster at 101.500 to 101.505.
Crossing to the weak side of the uptrending angle at 101.200 has created strong downside momentum. If this continues then we could see a break into 100.473. This is followed by the minor bottom at 100.40 and the support cluster at 100.200 to 100.171.