March U.S. Dollar Index futures finished slightly lower on Monday in a lackluster trade. There were no major economic reports or fresh news about the progress of U.S. tax reform. Many of the major players were also on the sidelines awaiting Wednesday's U.S. Federal Reserve's decisions on interest rates and monetary policy.
Daily Swing Chart Analysis
The main trend is up according to the daily swing chart. A trade through the November 21 main top at 94.085 will signal a resumption of the uptrend. This could trigger an acceleration to the upside since the next major top is 95.07.
The main range is 95.07 to 92.43. Its retracement zone at 93.75 to 94.06 is currently acting like resistance. Trader reaction to this zone will tell us if the buying is getting stronger or if sellers are retaking control.
The new short-term range is 92.55 to 94.075. Its retracement zone at 93.31 to 93.13 is the next downside target. This is followed by a major retracement zone at 92.93 to 92.43.
The next move in the index will be determined by momentum. However, we may have to wait until Wednesday after the Fed releases its decisions at 1900 GMT, before we see volume strong enough to sustain a breakout over 94.085 or under 93.750.
This article was originally posted on FX Empire
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
