Forex: US Dollar Technical Analysis – 17-Month Trend Line in Play
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10547 (23.6% Fib exp, trend line from Sep‘12), 10513 (38.2% Fib exp.)
- Resistance: 10602 (Feb 21 high)
The Dow Jones FXCM US Dollar Index is once again testing support at a rising trend line set from September 2012, a barrier reinforced by the 23.6% Fibonacci expansion at 10547. A break below this barrier initially exposes the 38.2% level at 10513. Near-term resistance is at 10602, the February 21 high. The fundamental backdrop seems supportive and our long-term view continues to favor broad-based US Dollar strength in the months ahead. As such, we will continue to hold long USD 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.