US Dollar Technical Analysis – Cautious Recovery Attempted
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10431 (trend line), 10375 (double bottom)
- Resistance:10474-95, 10531 (May 28 high)
The Dow Jones FXCM US Dollar Index corrected cautiously higher ahead of the upcoming FOMC monetary policy announcement. Resistance lines up in the 10474-95 area, with a break above that on a daily closing basis opening the door for another test of the May 28 high at 10531. Support comes in at a pivotal rising trend line set from July 2011, now at 10431. A breach of this barrier would suggest a major reversal is in play and initially clear the way for a challenge of double bottom support at 10375.
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.