Forex: US Dollar Technical Analysis – Clear Conviction Lacking
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10559 (trend line from Sep’12), 10520 (Feb 17 low)
- Resistance: 10614 (23.6% Fib exp.), 10673 (38.2% Fib exp.)
The Dow Jones FXCM US Dollar Index is still struggling to find direction, with prices locked in a narrow consolidation range above support at a rising trend line set from September 2012. A break above resistance at 10614, the 23.6% Fibonacci expansion, initially exposes the 38.2% level at 10673. Trend line support is now at 10559, with a reversal below that eyeing the February 17 low at 10520.
Our long-term view continues to favor broad-based US Dollar strength in the months ahead. Furthermore, absent a defined break below the trend line on a daily closing basis, the medium-term uptrend remains intact. As such, we remain long the greenback 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