US Dollar Technical Analysis – Rising Trend Survives FOMC
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10431 (trend line), 10424 (channel floor), 10375 (double bottom)
- Resistance:10474-95, 10531 (May 28 high)
The Dow Jones FXCM US Dollar Index turned lower after the FOMC policy announcement but long-term trend support from July 2011 (10431) remains intact. This barrier is reinforced by a falling channel bottom at 10424. Breaking below that on a daily closing basis would suggest a major reversal in progress and expose double bottom support at 10375.Resistance remains in the 10474-95 area, with a turn above that clearing the way for another challenge of the May 28 high at 10531.
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.