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US Dollar Index Forecast November 10, 2015, Technical Analysis

By:
Christopher Lewis
Published: Nov 10, 2015, 04:41 UTC

The US Dollar Index fell a bit during the course of the session on Monday, as we pulled back from the massive breakout that formed on Friday. This is

US Dollar Index Forecast November 10, 2015, Technical Analysis

The US Dollar Index fell a bit during the course of the session on Monday, as we pulled back from the massive breakout that formed on Friday. This is classic technical analysis in our opinion, as we will simply pull back and try to find enough momentum to keep going higher. With this, we are waiting to see whether or not there is a supportive candle that we can take advantage of, and will not hesitate to do so. We believe that there should be a massive amount of support near the 98 handle now, and as a result do not anticipate seeing this market go lower than there.

Given mind that the jobs number on Friday was much better than anticipated, and now are a lot of traders are thinking that the month of December could see an interest-rate hike. That of course will attract more money into the US dollar, and drive down the value of other currencies such as the Euro. The Euro is roughly 40% of this contract, so as it falls in value, it makes a lot of sense that this particular contract rises.

We believe that pullbacks offer value that you can take advantage of, and that is exactly what’s happening right now. However, we could continue to go little bit lower based upon the fact that we have not seen a supportive bounce yet. Look to short-term charts going forward as we feel the move could be rather quick and decisive when we turned back around. Once we do, we fully anticipate seeing this market head back to the 100 level, which of course is a large, round, psychologically significant number and where the market reach towards recently. With that being the case, it’s only a matter of time before this market looks bullish again. As far selling is concerned, we don’t have any interest in doing so at least until we get below the 96.50 level, something that does not look likely to happen anytime soon. With the Federal Reserve seemingly pressured to raise interest rates, the US dollar should continue to do quite well.


 

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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