The USD was Steady

USD Index Futures Give Back Wednesday’s Gains

Posted Thursday, October 4, 2018 by
Shain Vernier • 1 min read

The Thursday U.S. session has not been kind to the USD Index. Values are off significantly from Wednesday’s highs, trading toward the 95.000 handle. December USD Index futures have been in a daily uptrend since September 20th. Today’s action may prompt the first negative close in six sessions.

Weakness in the USD Index comes on the heels of strong U.S. employment numbers. Both Continuing and Initial Jobless Claims for late September beat projections, coming in under estimates. This data comes one day ahead of tomorrow’s NonFarm Payrolls report, which is expected to be very strong.

USD Index Futures

December USD Index Futures are not performing well ahead of Friday’s U.S. NFP numbers. At press time, values are pushing intraday lows just above the 95.000 handle.

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

Here are the key support levels to watch until Friday’s closing bell:

  • Support(1): 38% Current Wave, 94.870
  • Support(2): Bollinger MP, 94.560
  • Support(3): Daily SMA, 94.285

Overview: It has been a big week on the markets, including the USMCA deal, turbulence in equities, and a collection of strong U.S. employment numbers. Throw in rising U.S. Treasury yields and many traders are taking time out to gameplan for the coming weeks.

In the event that the USD experiences more selling tomorrow, a long from the current wave 38% Fibonacci retracement will come into play. The prevailing trend remains bullish ― a buy from just beneath the 95.000 level is a solid trade location to the long.

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