Forex: US Dollar Technical Analysis – Looking for a Breakout
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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 is still trading sideways in a choppy range below resistance at 10595, the 38.2% Fibonacci retracement. A push through initial support in the 10495-500 area, marked by the 38.2% Fib expansion and the March 19 low, targets the 50% level at 10470. Alternatively, a turn back above resistance exposes the 50% Fib retracement at 10626.
Our long-term fundamental outlook continues to favor a stronger US Dollar against its major currency counterparts in the months ahead. As such, we continue to hold a long position via theMirror 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.