To receive Ilya's analysis directly via email, please SIGN UP HERE
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10359 (38.2% Fib exp.), 10339 (channel floor)
- Resistance: 10411 (23.6% Fib ret.), 10443 (14.6% Fib exp.)
The Dow Jones FXCM US Dollar Index issued its largest drop in a month, bringing greenback to the weakest level since October 2013. Sellers now aim to challenge the 38.2% Fibonacci expansion at 10359. A break below this barrier exposes the bottom of a falling channel guiding the down trend since the beginning of the year, now at 10339. Alternatively, a move back above the 23.6% level at 10411 aims for the 14.6% Fib at 10443.
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