US Dollar Index (DX) Futures Technical Analysis – Fibonacci Pivot at 92.24 Controlling Market’s Direction

March U.S. Dollar Index futures broke sharply during the last week of the year. The downside momentum created by the move suggests sellers may try to take out last year’s low at 90.68 early in the year.

Weekly Technical Analysis

The main trend is down according to the weekly swing chart. The trend turned down when sellers took out the previous main bottom at 92.13. This could create the downside momentum needed to challenge the next main bottom at 90.68.

The main range is 97.04 to 90.68. Its retracement zone at 93.86 to 94.61 stopped a rally at 94.76 during the week-ending November 10.

The short-term range is 90.68 to 94.76. Its retracement zone is 92.72 to 92.24. The market smashed through this zone last week. The retracement zone is new resistance.

Weekly Technical Forecast

Based on Friday’s close at 91.83 and last week’s price action, the direction of the dollar index is likely to be determined by trader reaction to the short-term Fibonacci level at 92.24.

A sustained move under 92.24 will signal the presence of sellers. This could drive the market into an uptrending Gann angle at 91.74. If it fails then look for a test of the next uptrending Gann angle at 91.21. This is the last potential support angle before the 90.68 main bottom.

A sustained move over 92.24 will indicate the presence of buyers. This could trigger a move into a resistance cluster at 92.72, 92.76 and 92.81.

The trigger point for an acceleration to the upside is 92.81.