US Dollar Index (DX) Futures Technical Analysis – Long-Term Bullish Over 94.815, Bearish Under 94.048

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December U.S. Dollar Index futures closed slightly better on Monday as a weaker British Pound and Japanese Yen were offset by a stronger Euro.

After last week's steep sell-off, investors didn't seem too worried about a possible delay in U.S. tax reform, choosing instead to focus on important domestic economic data, including inflation and retail sales numbers, due later this week.

Daily Swing Analysis

The main trend is up according to the daily swing chart, however, momentum has shifted to the downside.

A trade through 94.115 will change the main trend to down. This could trigger a further decline into the next main bottom at 93.365. A move through 95.07 will signal a resumption of the uptrend.

Daily Retracement Zone Analysis

The short-term range is 95.07 to 94.155. Its 50% level or pivot at 94.613 is resistance. This is followed closely by a major Fibonacci level at 94.815.

On the downside, the first target is major 50% level at 94.048.

The main range is 92.635 to 95.07. Its retracement zone at 93.853 to 93.565 is the primary downside target.

Longer-term traders should note that the index is currently trading inside a major retracement zone bounded by 94.048 to 94.815. This zone is essentially controlling the longer-term direction of the market.

Holding inside 94.048 to 94.815 will indicate a neutral market. Look for a longer-term upside bias to develop on a sustained move over 94.815. A sustained move under 94.048 is likely to fuel a longer-term downside bias.

This article was originally posted on FX Empire


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , US Markets

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