Forex: US Dollar Technical Analysis – Wedge Boundary Retested
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10539 (wedge top), 10495 (Mar 19 low)
- Resistance: 10590 (23.6% Fib exp.), 10649 (38.2% Fib exp.)
The Dow Jones FXCM US Dollar Index pulled back from resistance at 10590, the 23.6% Fibonacci expansion to retest broken falling wedge resistance-turned-support at 10539. Breaking back below this barrier initially targets the March 19 low at 10495. Alternatively, a reversal back above 10590 exposes the 38.2% level at 10649.
Our long-term fundamental outlook continues to favor a stronger US Dollar against the benchmark currency’s top counterparts in the coming months. With that in mind, we will continue to hold a long position in 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.