US Dollar Index (DX) Futures Technical Analysis – November 27, 2015 Forecast

December U.S. Dollar Index futures are trading higher shortly before the regular session opening. The market is trading on the strong side of a short-term pivot and an uptrending angle, giving the market an early upside bias.

The main trend is up according to the daily swing chart. On Wednesday, the index surged through the previous main top at 100.065. This reaffirmed the uptrend while making 99.365 a new main bottom.

The short-term range is 99.365 to 100.23. Its 50% level or pivot is 99.80. Trader reaction to this level will likely set the tone of the market today.

A sustained move over 99.80 will indicate the presence of buyers. Overtaking the uptrending angle at 99.88 will indicate the buying is getting stronger. The daily chart is open to the upside with the next target a high at 100.23.

Taking out 100.23 will signal a resumption of the uptrend. This could trigger a rally into a steep uptrending angle at 100.30. Overtaking this angle will put the market in an extremely strong position.

A sustained move under 99.80 will signal the presence of sellers. This could trigger an acceleration to the downside since the nearest support angle doesn’t come in until 99.55. This angle is important because it essentially stopped the break on Wednesday.

The angle at 99.55 is also a trigger point for a steep break with potential targets at 99.365 and 99.19.

Watch the price action and read the order flow at 99.80 today. Trader reaction to this pivot will tell us whether the buyers or sellers are in control.