The U.S. Dollar is trading higher against a basket of major currencies early Wednesday as investors await the results of Tuesday’s U.S. elections.

Generally speaking, a victory by U.S. Democratic candidate Joe Biden would be bearish for the U.S. Dollar because he is expected to spend big on stimulus and take a freer approach to trade, boosting other major currencies at the greenback’s expense.

Investors remained cautious, however, due to heightened uncertainty about the election outcome. A Trump win or contested results would be supportive for the U.S. Dollar.

At 02:03 GMT, December U.S. Dollar Index futures are trading 93.625, up 0.065 or +0.07%.

Daily Swing Chart Technical Analysis

The main trend is up according to the daily swing chart. A trade through 94.315 will signal a resumption of the uptrend. A move through 94.795 will reaffirm the uptrend. The main trend will change to down on a move through 92.460.

The short-term range is 91.750 to 94.795. Its 50% level at 93.275 is potential support. On Tuesday, the selling stopped at 93.295.

The main range is 97.785 to 91.750. Its retracement zone at 94.770 to 95.480 is a major upside target and potential resistance area.

Daily Swing Chart Technical Forecast

The new minor range is 94.315 to 93.295. Its 50% level at 93.805 is likely to control the direction of the index on Wednesday.

Bullish Scenario

A sustained move over 93.805 will indicate the buying is getting stronger. This could create the momentum needed to challenge the minor top at 94.315. Taking out this level could trigger a surge into the resistance cluster at 94.770 to 94.795.

Bearish Scenario

A sustained move under 93.805 will signal the presence of sellers. This could trigger a break into the support cluster at 93.295 to 93.275.

The 50% level at 93.275 is a potential trigger point for an acceleration to the downside with 92.460 a potential downside target.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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