US Dollar Technical Analysis – Still Lingering at May Peak
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10474-95, 104414 (channel top)
- Resistance:10531 (May 28 high), 10589-619
The Dow Jones FXCM US Dollar Index recovered following a brief correction lower from two-month highs. Positioning has favored the upside after prices set a double bottom and broke the down trend from January. Near-term resistance is at 10531, the May 28 high. A move above that aims for the 10589-619 region. Support is in the 10474-95 area, with a reversal below that opening the door for a retest of the channel top at 10414.
Our long-term fundamental outlook continues to favor a broadly stronger US Dollar against the benchmark unit’s major 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.