USD INDEX Analysis: Do we see a continuation of the sideways trend, or do we see a trend?

The USD Index (US Index) movement so far does not constitute a strong trend, after rising and reaching the 100.463 level we saw another rebound and a break below 99.791. Today we saw a break below the uptrend line drawn below the last three bottoms and an attempt to test the 50-day moving average (red), but all were above daily support at 98.617.

therefore:

• Continued trading below 100.463 and above 98.617 may indicate more sideways movement, indicating a continued balance between supply and demand forces.
• However, a breakout and hold above 100.463 could signal the possibility of further gains, with a target at 101.527.
• However, a breakout and hold below 98.617 could signal the possibility of further declines, with a target of 97.684.

It is worth noting that today will be announced the change in non-agricultural private sector employment released by ADP (November), which is expected to be around 5,000, down from the previous 42,000; the non-manufacturing purchasing managers index data released by the Institute for Supply Management (ISM) (November) is expected to be around 52, down from the previous 52.4.

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