US Dollar Index (DX) Futures Technical Analysis – November 24, 2015 Forecast

December U.S. Dollar Index futures are trading sideways-to-lower during the pre-market session. There has been no follow-through to the upside following Monday’s higher close. This could be because of trader indecision or the thin trading conditions ahead of Thursday’s U.S. bank holiday.

Volatility and volume may pick up at 8:30 a.m. ET later today with the release of the U.S. Preliminary GDP report, but after that they may taper off, much like yesterday’s trading session.

The main trend is up according to the daily swing chart, however, the price action has been almost sideways the past two weeks.

Based on the close at 99.855, the nearest support comes in at 99.55 to 99.50. Additional support angles come in at 99.17 and 99.00. The latter is the angle which provided support last week.

The first upside target is yesterday’s high at 100.065. This is followed by a series of angles at 100.30, 100.50 and 100.83.

The current chart pattern and recent price action suggests a continuation of the sideways trade. Unless the GDP report blows away the estimate in either direction, the index is likely to sit inside a range until after this week’s holiday. Traders are looking for a reading of 2.0%.

The index could move in either direction today. We could see a “stretch” rally into 100.30, or a test of the support cluster at 99.55 to 99.50. The chart indicates the way of least resistance is to the upside. Any selling is likely to be labored because of the series of support angles.