US Dollar Index (DX) Futures Technical Analysis – November 21, 2017 Forecast

December U.S. Dollar Index futures are trading higher on Tuesday, helped by a weaker Euro. Yesterday, the single-currency posted its biggest loss in nearly a month as investors raised concerns over a political deadlock in Germany.

Daily Technical Analysis

The main trend is down according to the daily swing chart, but momentum is trending higher. A trade through 93.305 will signal a resumption of the downtrend.

The major support is a retracement zone at 93.85 to 93.56.

The short-term range is 95.07 to 93.305. Its retracement zone at 94.19 to 94.40 is the primary upside target. Since the main trend is down, sellers are likely to show up on a test of this zone. Trader reaction to this zone will determine whether the rally continues through 94.40, or the sellers regain control.

Daily Technical Forecast

Based on the current price at 94.02 and the earlier price action, the direction of the index today is likely to be determined by trader reaction to the 50% level at 93.85.

A sustained move over 93.85 will indicate the presence of buyers. This could trigger an acceleration into a 50% level at 94.19 and a resistance cluster at 94.40 to 94.45.

A sustained move under 93.85 will signal the presence of sellers. The first target is a support cluster at 93.82 to 93.81.

If 93.81 fails as support, we could see a plunge into another potential support cluster at 93.56.

Since there are no major reports today, the direction of the U.S. Dollar Index is likely to be determined by the movement in the Euro.