US Dollar Technical Analysis – Key Double Bottom at Risk
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10364, 10354, 10335
- Resistance:10382, 10397, 10403-12
The Dow Jones FXCM US Dollar Index is trying to breach a double bottom in play since October 2013 after breaking a trend line set from July 2011. Near-term support is at 10364, the 76.4% Fibonacci expansion. A daily close below that targets the 10354-9 area marked by the double bottom’s outer layer and the floor of a falling channel set from early June. Alternatively, a move above resistance 10382, the 61.8% level, aims for the 50% Fib at 10397.
While yesterday’s trend line break is an ominous sign for our long-term outlook favoring US Dollar strength, it seems prudent to wait for confirmation on a push through double bottom before declaring a reversal. 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.