Forex: US Dollar Technical Analysis – Rebound Ready to Begin?
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10520 (Feb 17 low)
- Resistance: 10576 (23.6% Fib ret.), 10610 (38.2% Fib ret.)
The Dow Jones FXCM US Dollar Index is edging higher after putting a Hammer candlestick. Initial resistance is at 10576, the 23.6% Fibonacci retracement, with a break above that exposing the 38.2% level at 10610. Near-term support is at 10520, the February 17 swing low.
Yesterday’s price action produced the strongest positive close thus far this month, hinting shift in the fundamental backdrop we discussed at the onset of the trading week may be starting to materialize. We remain long the US Dollar 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