US Dollar Technical Analysis – Cautious Recovery Attempted
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10404-19 , 10375, 10323
- Resistance:10474-95, 10531, 10589
The Dow Jones FXCM US Dollar Index is attempting to launch a recovery after testing multi-year rising trend support set from July 2011. This barrier (now at 10419) is reinforced by a falling channel bottom at 10404. Resistance continues to stand in the 10474-95 area, with a break above that on a daily closing basis opening the door for a challenge of the May 28 high at 10531. Alternatively, a turn below support would hint a major reversal is in progress and initially expose double bottom support at 10375, followed by the June 2012 high at 10323.
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