Forex: US Dollar Technical Analysis – Pivotal Support in Play
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10661 (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 continues to hover above support at the bottom of a rising channel that has guided the trend higher since late November 2013. This barrier is bolstered by the 23.6% Fibonacci retracement (10661).
A break lower from here on a daily closing basis initially exposes the 38.2% level at 10602. Near-term resistance is at 10718, a now-familiar horizontal pivot level, 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