Forex: US Dollar Technical Analysis – Familiar Resistance Eyed Again
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10661-7 (23.6% Fib ret., channel bottom), 10602 (38.2% Fib ret.)
- Resistance: 10718 (horizontal pivot), 10756 (Jan 21 high), 10789 (channel top)
The Dow Jones FXCM US Dollar index rose as expected after putting in a bullish Piercing Line candlestick pattern above support at 10661, marked by the bottom of a rising channel set from November and the 23.6% Fibonacci retracement. The bulls are now testing resistance at 10718 – a horizontal pivot barrier in play since mid-December. A daily close above this threshold initially exposes the January high at 10756, followed by the channel top at 10789. Alternatively, a turn below support in the 1.3545-52 area targets the 38.2% Fib at 10602. We are trading the long-term trend in the US Dollar via the Mirror Trader US Dollar currency basket.
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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