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US Dollar Index (DX) Futures Technical Analysis – November 20, 2015 Forecast

By:
James Hyerczyk
Published: Nov 20, 2015, 13:11 UTC

December U.S. Dollar Index futures are trading higher shortly before the cash market opening. The rally was triggered by a successful test of a short-term

Daily December U.S. Dollar Index

December U.S. Dollar Index futures are trading higher shortly before the cash market opening. The rally was triggered by a successful test of a short-term uptrending angle and major Fibonacci level. The index is currently testing a minor 50% level. Trader reaction to this level will tell us whether the market is setting up for a potentially bearish secondary lower top.

The main trend is up according to the daily swing chart. The main range is 98.50 to 99.965. Its 50% level or pivot is 99.23.

The short-term range is 99.965 to 98.795. Its 50% level or pivot is 99.38.

Look for a bullish tone to develop on a sustained move over 99.38 and a bearish tone on a sustained move under 99.23.

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

A sustained move over 99.38 will indicate the presence of buyers. The daily chart is open to the upside if this move can create some momentum. The first target is the main top at 99.965. This is followed by a pair of uptrending angles at 100.00 and 100.33.

A sustained move under 99.23 will also put the index on the bearish side of an uptrending angle at 99.25. This will signal the presence of sellers. The daily chart opens up to the downside under 99.23 with the next target an uptrending angle at 98.88. This is the angle which stopped the market on Thursday.

A move under 98.88 will likely trigger a fast move into the major 50% level at 98.78. This is also a trigger point for the start of an acceleration to the downside with 98.50 the next target. A trade through this level will turn the main trend to down on the daily chart.

Look for even more selling on a move through 98.50 with the next major target coming in at 97.65.

Look for a bullish tone to develop on a sustained move over 99.38 and a bearish tone to develop on a sustained move under 99.23. This 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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