US Dollar Technical Analysis – Multi-Year Support in Focus
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support:10395 (horizontal support shelf), 10332 (trend line from Jul’11)
- Resistance: 10658 (trend line from Mar’13)
The Dow Jones FXCM US Dollar Index is on pace to finish the trading week with the most dramatic five-day losing streak in six months. Sizing up overall positioning however, the ascending trend begun in late July 2011 is still intact. The latest selloff has taken the greenback toward testing support guiding the structural up move, now at 10332. This threshold is reinforced by a horizontal support shelf dating back to March 2013 at 10395.
We maintain a long-term constructive view on the US Dollar from a fundamental perspective and look for trend support to hold. As such, we remain long the benchmark currency via theMirror Trader US Dollar currency basket.Confirmation of uptrend resumption requires a break of the series of lower highs starting in July 2013, secured by a weekly close above trend line resistance now at 10658.
Weekly 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