US Dollar Index (DX) Futures Technical Analysis – In Position to Test Short-Term Uptrending Gann Angle at 93.59

December U.S. Dollar Index futures traded lower on Tuesday in a lackluster trade as investors remained cautious ahead of the European Central Bank’s monetary policy decision and President Trump’s selection of the next Fed Chair, which could come at any time.

Daily Technical Analysis

There was no follow-through to the upside on Tuesday and the index took out the previous day’s low, making 93.90 a new minor top. The main top is 94.10. A trade through this price will signal a resumption of the uptrend.

The minor trend will change to down on a move through 92.91. The main trend changes to down on a trade through 92.59.

The nearest short-term support angle comes in at 93.59. This angle has been guiding the market higher since October 12.

If it fails then look for a possible slide into the next short-term uptrending angle at 93.09.

Looking at the bigger picture, the dollar index is trading inside a major triangle formed by a downtrending Gann angle at 94.46 and the uptrending Gann angle at 92.86. The distance between the two angles is still pretty wide which could lead to wide but rangebound trading.

The longer the index stays inside the triangle, the bigger the breakout once buyers take out the top angle, or sellers take out the bottom angle.