December U.S. Dollar Index futures posted an inside move, lower close on Thursday. The chart pattern may be indicating trader indecision. The key area to
December U.S. Dollar Index futures posted an inside move, lower close on Thursday. The chart pattern may be indicating trader indecision.
Daily December U.S. Dollar Index
The key area to watch on the downside is a long-term uptrending Gann angle/50% level combination at 84.70 to 84.66. Although the market traded as low as 84.525 earlier in the week, taking out the combination with conviction is likely to trigger an acceleration to the downside with the major Fibonacci level at 84.14 the next likely target.
On the upside, the daily chart indicates there is room to the run with the first target a downtrending angle at 85.62. This is followed by the high for the week at 86.13 and another downtrending angle at 86.25.
The tone of the market today is likely to be determined by trader reaction to the support cluster at 84.70 to 84.66.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.
