Forex: US Dollar Technical Analysis – 2-Month Trend Line Under Fire
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10528 (trend line), 10495 (Mar 19 low)
- Resistance: 10590 (23.6% Fib exp.), 10649 (38.2% Fib exp.)
The Dow Jones FXCM US Dollar Index edged lower for a third consecutive session to retest falling trend line resistance-turned-support set from late January (10528). A break below this barrier initially targets the March 19 low at 10495. Near-term resistance is at 10590, marked by the 23.6% Fibonacci expansion, with a reversal above this barrier targeting the 38.2% level at 10649.
On the whole, our long-term outlook still calls for US Dollar appreciation against its leading currency counterparts. With that in mind, we remain long the benchmark unit 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.