Forex: US Dollar Technical Analysis – Three-Month Support Broken
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10602 (38.2% Fib ret.), 10555 (50% Fib ret.)
- Resistance: 10668 (channel floor), 10718 (horizontal pivot)
The Dow Jones FXCM US Dollar Index broke below key support at 10661, a barrier marked by the bottom of a rising channel set from late November 2013 and the 23.6% Fibonacci retracement. Sellers now target the 38.2% level at 10602, with a further push below that aiming for the 50% Fib at 10555. Alternatively, a reversal back above the channel bottom (now at 10668) aims for a horizontal pivot level at 10718.
We are holding long the US Dollar 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.