Free Forex Trading Signals: US Dollar Index (USDX) and EURUSD October 2015

□ Market: Foreign Exchange

□ Asset: US Dollar Index (USDX) and EURUSD

□ Forecast: USDX Local-High on October 9th ,2015, after Long on EURUSD

For the first time, the TCI indicator is applied to the US Dollar Index (USDX). All TCI readings can be viewed by clicking the USDX TCI tab below.

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US Dollar Outlook

The Foreign Exchange Market has been volatile lately as expectations for an early US interest rate hike turned out to be wrong. The US Dollar was sold heavily in early October. On October 2nd, 2015, EURUSD jumped from 1.114 to 1.131 almost instantly. This happened because US Nonfarm Payrolls came in at 142,000 instead of the 200,000 expected by most analysts. After the heavy sell-off, the US Dollar quickly regained some ground, showing it is still strong. As the following analysis shows, the US Dollar is expected to remain strong for a few more days before entering a short-term downtrend. 

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EURUSD Technical Analysis

Let’s see some important levels for EURUSD:

□ EURUSD ST Supply Levels: 1.1430-1.1465 | 1.1650 | 1.1710-1.1715 | 1.1750

□ EURUSD ST Demand Levels: 1.1135-1.1150 | 1.1010-1.1020 | 1.0800-1.0850

Chart: EURUSD

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US Dollar Index (USDX) Technical Analysis

USDX is moving in a strong channel that shows a slow uptrend. In the next few days, it will likely reach the upper boundary of this channel. After that, it will probably reverse its short-term trend and move downwards, which means going long on EURUSD.

Let’s see some important levels for the USD Index (USDX):

□ USDX ST Supply Levels: 97.05-97.15 (Reaching the Upper Channel of the Range)

□ USDX ST Demand Levels: 94.55-94.65 (Reaching the Lower Channel of the Range)

Chart: US Dollar Index (USDX)

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TCI on the US Dollar Index (USDX)

This is the first time we are applying the Trading Center Indicator (TCI) to the US Dollar Index (USDX). Below is the TCI readings table for USDX.

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EURUSD Statistics

Based on price action over the past decade, October is a good month to sell EURUSD, while November and December are the best months to go long. This is especially true for December. However, December 2014 was an exception because Mr. Mario Draghi announced plans to ease EU monetary policy, which had a major impact on the Euro’s value against all major currencies.

🔗 More: » EURUSD Statistics Here

 

■ Free Forex Trading Signals: US Dollar Index and EURUSD

Giorgos Protonotarios for TradingCenter.org (October, 6th 2015)

🔗 Link: » George at Linkedin