U.S. Dollar Index Futures (DX) Technical Analysis – Upside Bias Could Strengthen on Sustained Move Over 97.305

Based on the early price action and the current price at 97.280, the direction of the December U.S. Dollar Index the rest of the session on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 97.305.
James Hyerczyk
U.S. Dollar Index

Uncertainty over Brexit and value-seeking buyers are helping to support the U.S. Dollar against a basket of currencies on Wednesday. The biggest influence of the greenback’s strength is the weaker Euro and the British Pound. This is understandable since they will be most affected by the outcome of the Brexit vote.

The greenback is also trading slightly higher against the Canadian Dollar. The dollar is trading mixed against the safe-haven Swiss Franc and Japanese Yen. The dollar is trading higher against the Swiss Franc, and lower versus the Japanese Yen. The franc is weakening because of its close ties to the Euro Zone economy. The yen is attracting buyers because of a drop in demand for risky assets.

At 12:43 GMT, the December U.S. Dollar Index is trading 97.280, up 0.024 or +0.02%.

Daily December U.S. Dollar Index

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside with the formation of the closing price reversal bottom at 96.885 on October 21, and its subsequent confirmation.

The chart pattern doesn’t indicate a change in trend, but it could trigger the start of a meaningful short-covering rally. A trade through 96.885 will negate the reversal bottom and signal a resumption of the downtrend.

The main range is 94.975 to 99.305. Its retracement zone at 97.140 to 96.630 is support. This zone stopped the selling on Monday at 96.885.

The new minor range is 99.305 to 96.885. Its retracement zone at 98.095 to 98.380 is the next potential upside target.

Daily Technical Forecast

Based on the early price action and the current price at 97.280, the direction of the December U.S. Dollar Index the rest of the session on Wednesday is likely to be determined by trader reaction to the downtrending Gann angle at 97.305.

Bullish Scenario

A sustained move over 97.305 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to possibly extend into the uptrending Gann angle at 97.570.

The angle at 97.570 is a potential trigger point for an acceleration to the upside with the 50% level at 98.095 the next likely upside target.

Bearish Scenario

A sustained move under 97.305 will signal the presence of sellers. This could lead to a test of the main 50% level at 97.140. If this fails then the selling may extend into this week’s low at 96.885.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US