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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 104448 (channel top)
- Resistance: 10474-95, 10589-619
The Dow Jones FXCM US Dollar Index positioning hints a double bottom is in place at 10375, the October 2013 floor after prices secured a break above falling channel resistance set from January. Initial resistance is in the 10474-95 area, with a daily close above that clearing the way for a move to challenge the 10589-619 region. The channel top, now at 10448, has been recast as near-term support.
Our long-term fundamental outlook continues to favor a broadly stronger US Dollar against the benchmark unit’s major currency counterparts. As such, we remain long 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