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US Dollar Technical Analysis – Key Channel Top Pressured

By , Currency Strategist
16 May 2014 04:52 GMT

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Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
  • Support: 10375 (double bottom)
  • Resistance: 10458 (channel top), 10495 (support-turned-resistance)

The Dow Jones FXCM US Dollar Index looks to be attempting to set a double bottom at 10375, the October 22 close. Confirmation of the upward reversal pattern requires a breach of resistance is at 10458, marked by the top of a falling channel that has guided the benchmark currency downward since the beginning of the year. A daily close above this barrier initially targets horizontal support-turned-resistance at 10495.

Our long-term fundamental outlook still favors a broadly stronger US Dollar against its key counterparts in the months ahead. As such, we remain long the greenback via theMirror Trader US Dollar currency basket.

US Dollar Technical Analysis – Key Channel Top Pressured

Daily 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

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16 May 2014 04:52 GMT