Forex: US Dollar Technical Analysis – Idling at Channel Support
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10661-71 (23.6% Fib ret., channel bottom), 10602 (38.2% Fib ret.)
- Resistance: 10718 (horizontal pivot), 10756 (Jan 21 high)
The Dow Jones FXCM US Dollar Index started to edge higher as expected after forming a bullish Piercing Line candlestick pattern. The bulls failed to push through horizontal pivot resistance at 10718 however, recoiling to retest support in the 10661-71 area (marked by the bottom of a rising channel set from November and the 23.6% Fibonacci retracement). A break lower initially exposes the 38.2% Fib at 10602. Alternatively, a reversal above 10718 aims for the January high at 10756. 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.