A Strong Open To The Forex Week For The Greenback
Shain Vernier • 1 min read
All in all, It has been a relatively strong session for the Greenback. Gains against the Euro and British pound have highlighted today’s action. With a wide-open economic calendar and lagging U.S. equities, the USD has become an asset-of-choice for market participants.
December USD Index futures have rebounded nicely from the selling of late last week. Values have stabilized above the 95.000 handle, ensuring the prevailing daily uptrend remains intact. Thus far, the strength of September is being extended throughout the early October trade.
December USD Index Futures: Technical Outlook
The psychological level of 95.000 has driven two-way action to the December USD Index contract. At the moment, it appears that traders prefer to hold longs north of this level.
Here are the support levels to watch for the near future:
- Support(1): 38% Current Wave Retracement, 94.870
- Support(2): Bollinger MP, 94.695
- Support(3): Daily SMA, 94.140
Overview: The technical outlook for the USD Index is straightforward, contributing to my bullish view of this market. Fundamentals remain strong, with the FED committing to a policy of gradual tightening. The Greenback may be in for a period of prolonged strength as 2018 draws to a close.
A long from the 38% Retracement just beneath the 95.000 handle is good trade location to the bull. If this level comes into play, be on the lookout for a spike in bids hitting the market.