US Dollar Index (DX) Futures Technical Analysis – November 28, 2017 Forecast
The weaker Euro is helping to underpin the December U.S. Dollar Index futures contract on Tuesday. Optimism over U.S. tax reform is also helping to support the index. We could see further upside action today if FOMC members Dudley and Harker give hawkish speeches. Fed Chair nominee Jerome Powell could also drive the dollar higher if he delivers hawkish remarks during his testimony before Congress.
Daily Technical Analysis
The main trend is down according to the daily swing chart. However, momentum has shifted to the upside with the formation of a potentially bullish closing price reversal bottom at 92.43 on Monday and today's confirmation of the chart pattern.
The index is not in a position to change the main trend to up, but we could see a 2 to 3 day counter-trend rally.
A move through 92.43 will negate the chart pattern and signal a resumption of the downtrend with 91.215 the next major downside target.
The main range is 90.795 to 95.070. Its retracement zone at 92.93 to 93.43 is controlling the longer-term direction of the market.
Daily Technical Forecast
Based on the current price at 92.98 and the earlier price action, the direction of the index today is going to be determined by trader reaction to the major 50% level at 92.93.
A sustained move over 93.93 will signal the presence of counter-trend buyers. This could trigger a rally into a pair of downtrending Gann angles at 93.32 and 93.59. Sellers are likely to come in on a test of these angles because the main trend is down.
A sustained move under 93.93 will indicate the market still has work to do on the downside. The first target is a long-term uptrending angle at 92.55. This is followed by the major Fibonacci level at 92.43.
If this market is getting ready to turn higher then buyers will come in to defend 92.43. If 92.43 fails as support then look out to the downside because the next target angle comes in at 91.67.
This article was originally posted on FX Empire
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