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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10439 (61.8% Fib exp.), 10475-84 (channel floor, 23.6% Fib ret.)
- Resistance: 10401 (76.4% Fib exp.), 10339 (100% Fib exp.)
The Dow Jones FXCM US Dollar Index put in a bullish Piercing Line candlestick pattern above support at 10401, the 76.4% Fibonacci expansion, hinting a bounce may be ahead. Breaking above the 61.8% expansion at 10439 exposes the 10475-84 area, marked by the underside of a previously broken falling channel and the 23.6% Fib retracement. Alternatively, a reversal downward below support aims for the 100% expansion at 10339.
Our long-term fundamental view continues to call for a stronger US Dollar against its key counterparts in the months ahead. As such, we remain long the benchmark currency via theMirror Trader US Dollar currency basket.
Weekly Chart - Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com