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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11989, 11950, 11899
- Resistance:12049, 12089, 12149
The Dow Jones FXCM US Dollar Index stalled on a retest of a pivotal trend line after correcting upward from a monthly low. Near-term resistance is in the 12027-49 area (23.6% Fibonacci expansion, trend line), with a break above that on a daily closing basis exposing the 38.2% level at 12089. Alternatively, a turn below the 14.6% expansion at 11989 clears the way for a test of the 50% Fib retracement at 11950.
Our long-term fundamental outlook calls for a broadly stronger US Dollar against its major currency counterparts. With that in mind, we are holding long via the Mirror Trader US Dollar currency basket.
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Daily Chart - Created Using FXCM Marketscope
** 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
