USD/JPY

U.S. Dollar Index (DX) Futures Technical Analysis – New Resistance Cluster Formed at 93.975 – 94.090

The safe-haven U.S. Dollar is trading lower against a basket of major currencies on Thursday, after the revival of hopes for a partial fiscal stimulus package improved investor sentiment and appetite for riskier currencies.

Traders are reacting to a flurry of late-Tuesday tweets from President Donald Trump, after he cancelled talks with Democrats over coronavirus relief that suggested he was open to piecemeal government aid measures.

At 06:17 GMT, December U.S. Dollar Index futures are trading 93.595, down 0.083 or -0.09%.

Top White House officials have played down the likelihood that anything gets passed, but House Speaker Nancy Pelosi is pursuing a standalone bill for aid to airlines.

The selling pressure is being further supported by hints at even more easing from the U.S. Federal Reserve in the minutes of its September meeting.

Daily December U.S. Dollar Index

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart, however, momentum is trending lower. The main trend will change to down on a trade through 92.755. A move through 94.795 will signal a resumption of the uptrend.

The minor trend is down. This is controlling the momentum. A trade through 93.975 will change the minor trend to up. Taking out the next minor top at 94.090 will reaffirm the shift in momentum.

The short-term range is 91.750 to 94.795. Its 50% level at 93.275 is support.

The minor range is 94.795 to 93.375. Its 50% level at 94.085 is resistance.

Daily Swing Chart Technical Forecast

Today’s price action is being controlled by the momentum. If the downside momentum continues then look for a pullback into 93.375 and 93.275. Since the main trend is up, we could see a technical bounce on a test of this area. However, watch for an acceleration to the downside if 93.275 fails as support. This is the last potential support before the 92.755 main bottom.

If momentum shifts to the upside then watch for a test of the resistance cluster at 93.975, 94.085 and 94.090. The latter is a potential trigger point for an acceleration to the upside with the next target another resistance cluster at 94.770 to 94.795.

For a look at all of today’s economic events, check out our economic calendar.

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.