Forex: US Dollar Technical Analysis – Choppy Consolidation Continues
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10520 (Feb 17 low), 10492 (38.2% Fib exp.)
- Resistance: 10599 (38.2% Fib ret.), 10629 (50% Fib ret.)
The Dow Jones FXCM US Dollar Index continues to consolidate above support at 10520, the February 17 low. Near-term resistance is at 10599, the 38.2% Fibonacci retracement, with a break above that initially exposing the 50% level at 10629. Alternatively, a push below support on a daily closing basis eyes the 38.2% Fib expansion at 10492.
Our long-term trend analysis continues to favor a stronger US Dollar against its leading counterparts in the months ahead. With that in mind, we continue to hold a long position 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.