US Dollar Technical Analysis – Testing Two-Month Low
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10601 (trend line, 38.2% Fib ret.), 10554 (50% Fib ret.)
- Resistance: 10620 (horizontal pivot), 10660 (23.6% Fib ret.)
The Dow Jones FXCM US Dollar Index is testing through support at 10601, a barrier marked by the 38.2% Fibonacci retracement and a falling trend line set from mid-December. A daily close below this boundary targets the 50% retracement at 10554. Alternatively, a reversal back above horizontal support-turned-resistance at 10620 exposes 10660, the 23.6% Fib level.
The fundamental backdrop warns of weakness in the hours ahead. Looking through near-term volatility however, we maintain a broadly supportive outlook and continue to hold 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