US Dollar Technical Analysis – Sharp Selloff Takes a Break
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10359 (38.2% Fib exp.), 10336 (channel floor)
- Resistance: 10411 (23.6% Fib ret.), 10443 (14.6% Fib exp.)
The Dow Jones FXCM US Dollar Index corrected cautiously higher after producing the largest decline in a month yesterday. Near-term resistance is at 10411, the 23.6% Fibonacci expansion, with a break back above that on a daily closing basis initially targeting the 14.6% level at 10443. Renewed downward momentum aims for 10359, the 38.2% Fib. A break below that eyes the bottom of a falling channel guiding the down trend since the beginning of the year, now at 10336.
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.