Forex: US Dollar Technical Analysis – Trend Change in Progress?
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10525 (38.2% Fib exp.), 10497 (50% Fib exp.)
- Resistance: 10563 (trend line), 10615 (Feb 27 high)
The Dow Jones FXCM US Dollar Index broke below rising trend line set from September 2012, hinting the medium-term trend has changed gears. Prices are testing initial support at 10525, the 38.2% Fibonacci expansion, with a break below that targeting the 50% level at 10497. Alternatively, a reversal back above the trend line (now at 10563) eyes the February 27 high at 10615.
While the greenback seems vulnerable in the near- to medium-term, our structural long-term view continues to favor the upside scenario. As such, we remain long the greenback via the Mirror Trader US Dollar currency basket for the time being. **
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.