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US Dollar Index (DX) Futures Technical Analysis – December 1, 2015 Forecast

By:
James Hyerczyk
Published: Dec 1, 2015, 12:09 UTC

December U.S. Dollar Index futures are trading lower shortly before the cash market opening. The market broke sharply earlier in the session but has

Daily December U.S. Dollar Index

December U.S. Dollar Index futures are trading lower shortly before the cash market opening. The market broke sharply earlier in the session but has mounted a slight recovery heading into the regular session opening. The market found support after a test of a price cluster.

Daily December U.S. Dollar Index
Daily December U.S. Dollar Index

The main trend is up according to the daily swing chart. The new short-term range is 99.365 to 100.36. Its retracement zone is 99.86 to 99.74. Earlier in the session, the index found support on the 50% level at 99.86.

Based on the current price at 100.05, the direction of the market the rest of the session is likely to be determined by trader reaction to the uptrending angle at 100.13.

A sustained move over 100.13 will signal the presence of buyers. This could lead to an acceleration to the upside with potential targets at 100.36 and 100.37. These two levels are potential trigger points for another near-term surge into 100.80.

A sustained move under 100.13 will indicate the presence of sellers. This could lead to a retest of the support cluster at 99.87 to 99.86. The next targets under 99.86 come in at 99.80 and 99.74.

The trigger point for a steep sell-off is the Fib level at 99.74. The daily chart opens up under this level with the next potential target a main bottom at 99.365.

Watch the price action and read the order flow at 100.13 the rest of the session. Trader reaction to this level will tell us whether the bears are taking control or if the bulls have returned after an early session setback. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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