US Dollar Technical Analysis – Upside Breakout in the Works?
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10375 (double bottom?)
- Resistance: 10455 (channel top), 10495 (support-turned-resistance)
The Dow Jones FXCM US Dollar Index looks to be attempting to set a double bottom at 10375, the October 22 close. Confirmation of the upward reversal pattern requires a breach of resistance is at 10455, marked by the top of a falling channel that has guided the benchmark currency downward since the beginning of the year. A daily close above this barrier initially targets horizontal support-turned-resistance at 10495.
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.