US Dollar Index (DX) Futures Technical Analysis – December 08, 2017 Forecast

Optimism over the progress being made on U.S. tax reform and positive action to avoid a government shutdown on Saturday is helping to boost the March U.S. Dollar Index futures contract on Friday.

Later today at 1330 GMT, investors will get the opportunity to react to the latest U.S. Non-Farm Payrolls data. It is expected to show the U.S. economy added 198,000 jobs in November. The unemployment rate is expected to come in unchanged at 4.1% and Average Hourly Earnings are expected to rise 0.3%.

The NFP report is not expected to move the U.S. Dollar much since a Fed rate hike next week has been priced into the market unless it misses badly to the downside.

Daily Technical Analysis

The main trend is up according to the daily swing chart. The next target is the main top at 93.750. A trade through this top will reaffirm the uptrend.

The main range is 94.760 to 92.130. Its retracement zone at 93.445 to 93.755 is currently being tested. This zone is controlling the longer-term direction of the dollar index. Look for the upside bias to strengthen on a sustained move over 93.755 and for momentum to shift to the downside on a sustained move under 93.445.

Daily Technical Forecast

Based on the current price at 93.635, the direction of the dollar index the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at 93.52.

A sustained move over 93.52 will indicate the presence of buyers. This could trigger a move into the 93.750 to 93.755 resistance cluster. The Fibonacci level at 93.755 is the trigger point for an acceleration to the upside with the next target angle coming in at 94.07.

A sustained move under 93.52 will signal the presence of sellers. This could drive the index into the main 50% level at 93.445. Crossing to the bearish side of a downtrending Gann angle at 93.39 will put the index in a weak position. This could trigger an acceleration to the downside with the next target angle coming in at 92.89.

Basically, we’re looking for the upside bias to continue on a sustained move over 93.755 and for a downside bias to begin on a sustained move under 93.445.