USD

USD Index Futures Open October On A High Note

Posted Monday, October 1, 2018 by
Shain Vernier • 1 min read

The new USMCA deal is bringing big participation to U.S. markets, even the Greenback. December USD Index futures remain in bullish territory for a fourth consecutive session. Gains against the Euro, Japanese yen, and Australian dollar are a few of the main reasons for the positive sentiment.

U.S. President Trump is currently issuing public comments regarding the USMCA agreement from the White House Rose Garden. This is a big week for Trump politically, with a confirmation vote for Supreme Court nominee Brett Kavanaugh likely coming in days. Little market fallout is expected from the vote, but the political ramifications facing the Congressional Midterm Elections will be significant.

December USD Index Futures

After an early test of downside support, December USD index futures have turned in a strong session. Rates are trending higher and the key level of 95.000 is in play.

December USD Index Futures (DX), Daily Chart
December USD Index Futures (DX), Daily Chart

Overview: While I rarely engage USD Index futures, it is a great barometer for how the Greenback is performing. The past four sessions have been exceptionally strong. Last Wednesday’s hawkish FED announcements are shaping up to be a game changer for USD.

For the remainder of the U.S. session, I will be watching last Friday’s high of 94.950 and the psyche level of 95.000 very closely. In my opinion, this area is prime for an extended fight between the bulls and bears.

However, a breakout above 95.000 is possible. If a bullish break does develop, it may prove to be the launching point for a fourth-quarter rally toward yearly highs.

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About the author

Shain Vernier is our US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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