Forex: US Dollar Technical Analysis – March Lows Still in Play
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10495-500 (Mar 19 low, 38.2% Fib exp.), 10470 (50% Fib exp.)
- Resistance: 10595 (38.2% Fib ret.), 10626 (50% Fib ret.)
The Dow Jones FXCM US Dollar Index continues to consolidate in a choppy range below resistance at 10595, the 38.2% Fibonacci retracement. A break below initial support in the 10495-500 area (marked by the 38.2% Fib expansion and the March 19 low) on a daily closing basis will target the 50% level at 10470. Alternatively, a turn back above resistance exposes the 50% Fib retracement at 10626.
On balance, 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.