On Monday, the December U.S. Dollar Index continued to trade inside last week’s 86.13 to 84.525 range, but the lower close gives the index an early
On Monday, the December U.S. Dollar Index continued to trade inside last week’s 86.13 to 84.525 range, but the lower close gives the index an early downside bias today.
Daily December U.S. Dollar Index
The downtrending angle that stopped the rally yesterday comes in at 85.37.
The short-term range is 86.87 to 84.525. Its retracement zone is 85.70 to 85.97. If 85.37 is taken out with conviction then look for a rally into this retracement zone.
On the downside, the first support is a long-term uptrending angle from the 82.45 bottom at 84.83. Breaking this angle could trigger a break into the major 50% level at 84.66.
The pivot price formed by last week’s range is 85.33. This price is controlling the short-term direction of the market. Trader reaction to this price will set the tone for the day.
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.
