US Dollar Index (DX) Futures Technical Analysis – October 30, 2017 Forecast
December U.S. Dollar Index futures are trading lower on Monday. There isn’t much of a range which suggests we could be looking at end-of-the-month consolidation. Buyers also appear to be taking a breather after posting its biggest weekly rise this year.
In other news, net short bets on the dollar fell to their smallest in nearly three months, about $8 billion, roughly half of what they were a month ago, according to the Commodity Futures Trading Commission data released late last week.
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Daily Technical Analysis
The main trend is up according to the daily swing chart. A trade through $95.06 will signal a resumption of the uptrend.
Today’s lower-low chart pattern has made 95.06 a new minor top.
The market is also trading inside a major retracement zone bounded by 94.815 to 94.05.
The new short-term range is 93.365 to 95.06. Its retracement zone is 94.21 to 94.01.
Daily Forecast
Based on the early price action, the direction of the dollar index today is likely to be determined by trader reaction to the major Fibonacci level at 94.815.
A sustained move under 94.815 will signal the presence of sellers. The daily chart is open to the downside so if the selling begins to accelerate, we could see a move into a cluster of levels at 94.21, 94.05 and 94.01.
Overtaking and sustaining a rally over 94.815 will indicate the return of buyers. This may create enough upside momentum to challenge last week’s high at 95.06. This would signal a resumption of the uptrend.