US Dollar Technical Analysis: Consolidating Near 4-Month High
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10513-27, 10481, 10456
- Resistance:10560, 10606, 10663
The Dow Jones FXCM US Dollar Index is digesting gains having hit a four-month high after rising as expected following the formation of a Bullish Engulfing candle pattern. Near-term resistance is at 10560, the 50% Fibonacci retracement, with a daily close above that exposing the 61.8% level at 10606. Alternatively, a reversal below resistance-turned-support in the 10513-27 area marked by the May 28 high and 38.2% Fib opens the door for a test of a horizontal pivot in play since late April at 10481.
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.