Today marks the observation of Martin Luther King day in the United States. Wall Street is taking the session off and an early close is scheduled for the futures markets. However, the forex remains open for business, with the USD putting together a bullish session. March USD Index futures have traded to the green during the overnight, rallying above the 96.000 handle.

Today’s action will be modest and decrease as the shortened session wears on. If you are going to trade, be aware of thin markets and limited liquidity beginning at about 11:00-12:00 PM EST.

March USD Index Futures

It has been an extremely bullish ten-day run for the March USD Index. Since the plunge beneath 95.000 on January 9 and 10, the rally has been on.

Here are two support levels to watch as the day unfolds:

• Support(1): Daily SMA, 95.890
• Support(2): Bollinger MP, 95.770

Overview: With no economic events scheduled for this holiday session, participation is likely to be light and price action inconsistent. Spreads will vary as will market liquidity. If you are going to trade the USD Index be sure to use moderate leverage and have your stop losses in place ahead of time.

Institutional money will soon return to the forex, beginning with U.K. Average Earnings (Jan.) hitting the newswires during the overnight. The pre-U.S. session features the release of Existing Home Sales (Dec.) data for the lagging American real estate sector. While the remainder of the trading day may prove challenging, Tuesday certainly shows promise.