U.S. Dollar Index (DX) Futures Technical Analysis – Strong Upside Momentum Puts 94.570 – 94.740 on the Radar
The U.S. Dollar is trading near a 2-1/2 week high against a basket of major currencies early Monday as rapidly rising inflation in the United States boosted the case for earlier Federal Reserve interest rate hikes.
The U.S. Federal Reserve holds a two-day monetary policy meeting November 2-3 with the Federal Open Market Committee (FOMC) widely expected to announce a tapering of stimulus on Wednesday. However, investors are hoping for clues as to the timing of the first interest rate hike and possibly others.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through 94.300 will signal a resumption of the uptrend. A move through 93.265 will change the main trend to down.
The short-term range is 94.570 to 93.265. Its 50% level at 94.020 is the first support.
Another short-term range is 92.970 to 94.570. Its retracement zone at 93.770 to 93.580 is another potential support area.
Reference: Yahoo. Finance
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