FXEMPIRE
All

US Dollar Index (DX) Futures Technical Analysis – November 4, 2015 Forecast

James Hyerczyk
Daily December U.S. Dollar Index
Daily December U.S. Dollar Index

December U.S. Dollar Index futures rallied Tuesday, driven by increased appetite for risky assets like stocks and with higher U.S. Treasury yields. A plunge in the Euro also helped boost the dollar. The single-currency rallied after European Central Bank President Mario Draghi reiterated that further easing was on the table for December.

Despite the gain, buyers still appeared to be a little tentative ahead of Thursday’s Bank of England monetary policy committee meeting and Friday’s major U.S. Non-Farm Payrolls report. Economists predict the jobs report will show that the economy added about 179K jobs in October.

Meeting or exceeding this number would increase the odds of a December rate hike by the U.S. Federal Reserve.

Daily December U.S. Dollar Index

The main trend is up according to the daily swing chart, however, momentum has been to the downside since October 28 with prices consolidating inside the 97.895 to 96.51 range. The mid-point or pivot price of this range is 97.20. This price is essentially controlling the short-term direction of the market.

Yesterday’s close was 97.24. This puts the index on the strong side of the pivot at 97.20. A sustained move over this level will indicate the presence of buyers. Crossing to the strong side of the steep uptrending angle at 97.33 will put the index in a bullish position. This could trigger a rally into the long-term downtrending angle at 97.76.

The angle at 97.76 is the last potential resistance angle before the 97.895 short-term top. Taking out this level will signal a resumption of the uptrend. It could also trigger an acceleration into the next downtrending angle at 98.25.

A sustained move under 97.20 will signal the presence of sellers. The daily chart opens up to the downside under this angle with the next major near-term target a 50% level at 95.86.

Watch the price action and read the order flow at 97.20 today. Trader reaction to this level will tell us whether the buyers or sellers are in control today. 

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US