US Dollar Technical Analysis: Prices Soar to 4-Month High
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10513, 10481, 10456
- Resistance:10531, 10560, 10606
The Dow Jones FXCM US Dollar Index continues to advance as expected after putting in a Bullish Engulfing candle pattern at support set from October 2013. A daily close above the 38.2% Fibonacci retracement at 10513 has exposed the May 28 high at 10531. Pushing further beyond that targets the 50% level at 10560. Alternatively, reversal back below 10513 opens the door for a challenge of a horizontal pivot at 10481, followed by the intersection of a rising trend line set from the July 1 low and the 23.6% Fib at 10456.
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.