US Dollar Technical Analysis – Multi-Year Uptrend at Risk
To receive Ilya's analysis directly via email, please SIGN UP HERE
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10434, 10419, 10375
- Resistance: 10474-95, 10531, 10589
The Dow Jones FXCM US Dollar Index continues fall in the aftermath of the FOMC announcement, probing below multi-year trend support (10434). This barrier is reinforced by a falling channel bottom at 10419. Breaking below that on a daily closing basis would suggest a major reversal is in progress and expose a double bottom at 10375.Resistance remains in the 10474-95 area, with a turn above that opening the door for another test of the May 28 high at 10531.
Our long-term fundamental outlook continues to call for a broadly stronger US Dollar against its leading counterparts. With that in mind, we remain long via the Mirror 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.