US Dollar Technical Analysis – Aiming to Extend Recovery
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10474-95, 104441 (channel top)
The Dow Jones FXCM US Dollar Index looks poised to continue higher having set a critical double bottom at 10375, the October 2013 floor. An upward trend change signaled by a break above resistance at the top of a falling channel guiding the down trend since January is seeing follow-through with a break of resistance in the 10474-95 area. The bulls now aim to challenge the 10589-619 region, with a move above that opening the door for an advance to year-to-date highs. Alternatively, a reversal back below 10474 eyes channel top support-turned-resistance at 10441.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.