US Dollar Technical Analysis: Pullback Appears Corrective
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10405, 10389, 10354
- Resistance:10431, 10452, 10473
The Dow Jones FXCM US Dollar Index rebounded as expected after putting in a Bullish Engulfing candle pattern at support set from October 2013. A shallow pullback looks corrective in the context of the upside breakout. A daily close above resistance at 10431, the 38.2% Fibonacci retracement, targets the 50% level at 10452. Alternatively, a turn back below the 23.6% Fib at 10405 clears the way for a challenge of the 14.6% retracement at 10389.
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.