Forex: US Dollar Technical Analysis – Downward Drift Continues
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10495-500 (Mar 19 low, 38.2% Fib exp.), 10488-70 (channel floor, 50% Fib exp.)
- Resistance: 10573 (channel top), 10595 (38.2% Fib ret.)
The Dow Jones FXCM US Dollar Index is edging lower within the confines of a falling channel. Near-term support is in the 10495-500 area, marked by the 38.2% Fibonacci expansion and the March 19 low. A break below this boundary aims for the channel bottom at 10487, followed by the 50% level at 10470. Alternatively, a push above the channel top at 10573 aims for the 38.2% Fib retracement at 10595.
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