US Dollar Index (DX) Futures Technical Analysis – November 23, 2015 Forecast

December U.S. Dollar Index futures followed through to the upside after Friday’s strong close. The buying was strong enough to take out the previous main top at 99.965, signaling a resumption of the uptrend. It also made 98.795 a new main bottom.

Based on the early price action and the current price at 99.935, the direction of the market the rest of the session will likely be determined by trader reaction to the steep uptrending angle at 99.80.

A sustained move over 99.80 will signal the presence of buyers. The first target is the intra-day high at 100.04. This is followed by a steep uptrending angle at 100.25. Overtaking this angle could trigger an acceleration into the steep, longer-term uptrending angle at 100.58.

Overtaking 100.58 will put the index in an extremely bullish position with the April 13 top at 101.19 the primary upside target.

A sustained move under 99.80 will indicate the presence of sellers. This could trigger an acceleration to the downside with the first target a support cluster at 99.38 to 99.30. Additional support angles come in at 99.05 and 98.94. The last angle provided support last week when the index bottomed at 98.795.

Watch the price action and read the order flow at 99.80 the rest of the session. This will tell us whether the bulls or the bears are in control.