US Dollar Technical Analysis – 3-Year Uptrend Still at Risk
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10420 , 10401, 10375
- Resistance:10462, 10474-95, 10531
The Dow Jones FXCM US Dollar Index remains in a precarious position as prices continue to hover above multi-year rising trend support set from July 2011. This barrier (now at 10420) is reinforced by a falling channel bottom at 10401. A daily close below that would suggest a major reversal is in progress and initially expose double bottom support at 10375.Channel top resistance is at 10462, with a move above that exposing the 10474-95 cluster. The next topside barrier after that stands at 10531, May 28 high.
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 theMirror 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.