US Dollar Index (DX) Futures Technical Analysis – November 11, 2015 Forecast
December U.S. Dollar Index futures are trading lower shortly before the regular session opening. Volume is light and the range is tight due to today’s U.S. bank holiday.
Yesterday, the market inched higher to 99.60, taking out last week’s high and continuing the uptrend. There was no follow-through to the upside earlier today and the selling pressure took out yesterday’s low. This makes 99.60 a new minor top.
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The first downside objective today is a major Fibonacci level at 98.78. This is followed closing by a steep uptrending angle at 98.58. The daily chart opens up to the downside on a sustained move under this angle. The next major objective is a 50% level at 97.65.
The 50% level at 97.65 is also a trigger point for an acceleration to the downside. The new short-term range is 93.83 to 99.60. If the 50% level is taken out with conviction then the new short-term retracement zone at 96.71 to 96.03 becomes the primary downside target.
Watch the price action and read the order flow at 98.78 today. Trader reaction to this level will tell us whether the bulls or the bears are in control. Be careful buying strength and selling resistance because of the low volume, you get caught in a trap.