U.S. Dollar Index (DX) Futures Technical Analysis – Market Turns Bullish on Sustained Move Over 93.275
The U.S. Dollar is trading lower against a basket of major currencies late Tuesday as investors booked profits after yesterday’s gains. Meanwhile, worries persisted about at second coronavirus wave and uncertainty ahead of the U.S. election.
Despite fears of a slowdown in the global economic recovery, the greenback lost ground to currencies that tend to appreciate from higher risk appetite such as the Euro, British Pound and the commodity-linked Australian and New Zealand Dollars.
At 20:00 GMT, December U.S. Dollar Index futures are at 93.935, down 0.109 or -0.12%.
In other news, President Trump acknowledged on Tuesday a coronavirus economic relief deal would likely come after the election, with the White House unable to bridge differences with fellow Republicans in the U.S. Senate as well as congressional Democrats.
Meanwhile, the current polls give Democrat Joe Biden a solid lead over U.S. President Donald Trump in the upcoming presidential election, but the contest is much tighter in battleground states that could decide the outcome.
Daily Swing Chart Technical Analysis
The main trend is down according to the daily swing chart. A trade through 92.460 will signal a resumption of the downtrend. The main trend will change to up on a move through 93.925.
The four days of consolidation are impressive, but haven’t been strong enough to change the momentum to up.
The minor range is 91.750 to 94.795. Its 50% level at 93.275 is resistance, but also a potential trigger point for an acceleration to the upside.
The direction of the December U.S. Dollar Index is being controlled by the pivot at 93.275 and the headlines. Unless the headlines suddenly turn bullish, we’re going to treat this level as resistance.
Since the technicals usually precede the headlines because the bigger players get the news first, we’re likely to see a breakout over 93.275 before we read a bullish headline.
For a look at all of today’s economic events, check out our economic calendar.