Forex: US Dollar Technical Analysis – Attempting to Build Higher
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10560 (channel top)
- Resistance: 10590 (23.6% Fib exp.), 10649 (38.2% Fib exp.)
The Dow Jones FXCM US Dollar Index recovered to secure a break above resistance at the top of a minor falling channel set from mid-March, opening the door for a test of the 23.6% Fibonacci expansion at 10590. A break above this barrier on a daily closing basis initially targets the 38.2% level at 10649. Channel top support-turned-resistance is now at 10560.
Our long-term outlook still favors US Dollar strength in the coming months. With that in mind, we remain long against the benchmark unit against an average of its top counterparts 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.