US Dollar Technical Analysis – Sideways Trade Continues
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10474-95, 10395 (channel top)
- Resistance:10531 (May 28 high), 10589-619
The Dow Jones FXCM US Dollar Index remains in consolidation mode having secured a key upside breakout three weeks ago. The first key layer of resistance remains at 10531, the May 28 high. A break above that on a daily closing basis targets the 10589-619 region. Alternatively, a turn below support in the 10474-95 area clears the way for a test of a recently broken falling channel top, now at 10395.
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.