US Dollar Index forecast for the week of November 9, 2015, Technical Analysis

The US Dollar Index shot higher during the course of the week, breaking well above the top of the shooting star from the previous week at the 98 handle. Because of this, we believe that the US dollar continues to go much higher and will reach towards the 100 level first, and then eventually the 102 level at this point in time. Ultimately, we think pullbacks offer plenty of value and that the US dollar will continue to be preferred over most other currencies in the world as the Friday session was so explosive. This of course was because of the Nonfarm Payroll Numbers being much higher than anticipated, almost double what was estimated. This of course is good for the US dollar, especially considering that being stronger employment wise, there is a good chance that the interest-rate outlook in America is stronger than Europe obviously.

Any pullback at this point in time should offer value, as the market looks set to go much higher. We have in fact broken above the top of a descending triangle of sorts, so this suggests that there has been a sea change of attitude when it comes to the US dollar, and that of course should continue the uptrend that we have seen over the longer term. Ultimately, the market should offer plenty of opportunities for long-term buyers and short-term buyers alike.

With the European Central Bank suggesting that more quantitative easing could be coming, it makes sense of the Euro will continue to be relatively soft. Remember, that is more than 40% of this contract, and with that being the case, it makes sense that we continue to go much higher. In fact, the USD/JPY pair broke out to the upside as well, and that of course suggests that this pair should go higher also as it is the third most important part of this contract as well. Ultimately, this should work against commodities as well as other currencies, so we believe that the US dollar is King again.