US Dollar Index (DX) Futures Technical Analysis – November 20, 2017 Forecast

December U.S. Dollar Index futures are trading higher shortly after the regular session opening. The index surged to the upside early in the session after the Euro plunged in reaction to political uncertainty in Germany.

The index started to retreat once the Euro found support after investors determined the issues in German were a local problem and not likely to affect the monetary policy decision of the European Central Bank.

Volume and volatility are expected to come in below average because this is a U.S. holiday week and many of the major players will be sitting it out until next week.

Additionally, don’t expect to hear anything new about tax reform and the Mueller probe until Washington returns from its Thanksgiving recess.

Daily Technical Analysis

The main trend is down according to the daily swing chart. However, momentum shifted to the upside earlier today.

A trade through 93.305 will signal a resumption of the downtrend with potential targets at 92.91 and 92.635.

The main range is 92.635 to 95.07. Its retracement zone at 93.853 to 93.565 is currently being tested. Trader reaction to this zone will set the longer-term tone of the market.

The new short-term range is 95.07 to 93.305. Its retracement zone at 94.188 to 94.396 is the primary upside target.

On the downside, retracement level support is layered at 93.143, 92.933 and 92.688.

Daily Technical Forecast

Based on the current price at 93.66 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the long-term uptrending angle at 93.48.

A sustained move over 93.48 will indicate the presence of buyers. Holding above the Fib level at 93.565 will indicate the buying is getting stronger. This could trigger a rally into 93.853 and 93.95.

The downtrending Gann angle at 93.95 stopped the rally earlier in the session. This angle is also the trigger point for a surge into the next resistance target at 94.188.

Look out to the downside if 93.48 fails as support. The next two targets are 93.305 and 93.143.