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US Dollar Index (DX) Futures Technical Analysis – October 5, 2017 Forecast

By:
James Hyerczyk
Updated: Oct 5, 2017, 12:43 UTC

December U.S. Dollar Index futures are trading higher early Thursday. The market is recovering from yesterday’s setback. Volume is light as investor

U.S. Dollar Index

December U.S. Dollar Index futures are trading higher early Thursday. The market is recovering from yesterday’s setback. Volume is light as investor position themselves for Friday’s U.S. Non-Farm Payrolls report.

U.S. Dollar Index
Daily December U.S. Dollar Index

Daily Technical Analysis

The main trend is up according to the daily swing chart. A trade through 93.775 will signal a resumption of the uptrend.

A move through 93.085 will change the minor trend to down. This could lead to a break into the next minor bottom at 92.805.

The index found resistance earlier in the week inside a retracement zone bounded by 93.43 to 94.05. This is followed by another retracement zone at 94.05 to 94.815.

The combination of the two retracement zones makes 94.05 one of the most important price levels on the chart.

This week’s price action has created a minor range at 93.775 to 93.085. Its retracement zone is 93.43 to 93.51. This zone is currently being tested.

Daily Forecast

Based on the current price at 93.455 (1200 GMT) and the earlier price action, the direction of the dollar index the rest of the session is likely to be determined by trader reaction to the 50% level at 93.43.

A sustained move over 93.43 will signal the presence of buyers. This could lead to a quick test of the resistance cluster at 93.51 to 93.53. Overtaking 93.53 will indicate the buying is getting stronger. This could lead to a test of the minor top at 93.775.

Overtaking 93.775 will signal a resumption of the uptrend. This could lead to an acceleration into 93.97 then 94.05.

A sustained move under 93.43 will indicate the presence of sellers. The daily chart indicates that there is plenty of room to the downside with 93.085 the next likely target.

About the Author

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.

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