US Dollar Technical Analysis – Stalling at Multi-Year Support
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10409, 10375, 10323
- Resistance:10474-95, 10531, 10589
The Dow Jones FXCM US Dollar Index continues to find itself in a precarious position as prices test multi-year trend support set from July 2011. This barrier (now at 10417) is reinforced by a falling channel bottom at 10409. A daily close below that would suggest a major reversal is in progress and initially expose double bottom support at 10375, followed by the June 2012 high at 10323.Resistance remains in the 10474-95 area, with a move above that clearing the way for another challenge 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.