US Dollar Technical Analysis – Multi-Year Trend in Jeopardy
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10429 (trend line), 10375 (double bottom)
- Resistance:10474-95, 10531 (May 28 high)
The Dow Jones FXCM US Dollar Index is paused for a breather after last week’s aggressive downturn. A move below resistance-turned-support in the 10474-95 area has exposed pivotal rising trend line support set from July 2011 (now at 10429). A breach beneath this barrier on a daily closing basis clears the way for a challenge of a double bottom at 10375. Alternatively, a reversal back above 10495 opens the door for another test of 10531, the May 28 high.
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.