Forex: US Dollar Technical Analysis – Two-Month Support Eyed
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10617-20 (horizontal pivot, 38.2% Fib exp.), 10592 (23.6% Fib exp.)
- Resistance: 10642 (76.4% Fib exp.), 10658 (61.8% Fib exp.)
The Dow Jones FXCM US Dollar Index testing below support at 10642, the 76.4% Fibonacci expansion. A daily close below this barrier targets the 10617-20 area, marked by the 100% Fib and a horizontal support shelf dating back to mid-December 2013. A further push below this boundary exposes the 123.6% expansion at 10592. Alternatively, a reversal above the 61.8% level at 10658 aims for the underside of a rising channel set from November 2013, now at 10670.
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