US Dollar Technical Analysis – Treading Water Before FOMC
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10430 (trend line), 10375 (double bottom)
- Resistance:10474-95, 10531 (May 28 high)
The Dow Jones FXCM US Dollar Index is in digestion mode after following last week’s sharp decline. Dropping beneath resistance-turned-support in the 10474-95 area has opened the door for a test of a trend-defining rising trend line set from July 2011 (now at 10430). A break below this threshold on a daily closing basis exposes a double bottom at 10375. Alternatively, a turn above 10495 clears the way for another challenge 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.