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US Dollar Index (DX) Futures Technical Analysis – November 2, 2015 Forecast

By:
James Hyerczyk
Published: Nov 2, 2015, 07:13 UTC

December U.S. Dollar Index futures finished the week lower after posting a multi-month high earlier in the week. The weekly closing price reversal top

Daily December U.S. Dollar Index

December U.S. Dollar Index futures finished the week lower after posting a multi-month high earlier in the week. The weekly closing price reversal top suggests the selling may be greater than the buying at current price levels. A trade through 96.51 will confirm the potentially bearish chart pattern. This could trigger the start of a sharp break.

Fundamentally, traders may be adjusting positions ahead of the Reserve Bank of Australia and Bank of England monetary policy committee meetings later this week and the U.S. Non-Farm Payrolls report on Friday. The U.S. jobs report is important because it will help determine whether the economy is strong enough to handle a Fed interest rate hike in December.

Daily December U.S. Dollar Index
Daily December U.S. Dollar Index

Based on Friday’s close at 97.02, the first area to watch today is a price cluster at 96.83. This is a combination of an uptrending and downtrending angle. Treat this area like a pivot.

A sustained move over 96.83 will signal the presence of buyers. The daily chart indicates there is room to the upside with 97.79 the next major target, followed by last week’s high at 97.895.

A sustained move under 96.83 will indicate the presence of sellers. The daily chart is wide open to the downside under this level. If this price is taken out with better-than-average volume then it may trigger the start of an acceleration to the downside.

The new short-term range is 93.83 to 97.895. If sellers take out 96.83 with conviction then its retracement zone at 95.86 to 95.38 becomes the primary downside target.

Watch the price action and read the order flow at 96.83 today. Trader reaction to this level will tell us whether the bulls or the bears are in control. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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