Forex: US Dollar Technical Analysis – Rising Trend Support Tested
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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 is testing familiar support at the bottom of a rising channel that has guided the trend higher since late November 2013. Support is reinforced by the 23.6% Fibonacci retracement at 10661. A break below this barrier on a daily closing basis initially exposes the 38.2% level at 10602. Near-term resistance remains at 10718, with a reversal above that aiming for the January 21 high at 10756. We are long the greenback on a long-term basis 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.