US Dollar Technical Analysis: Corrective Downswing Expected
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10513, 10492, 10456
- Resistance:10560, 10606, 10663
The Dow Jones FXCM US Dollar Index may correct lower having rallied as expected after showing a Bullish Engulfing candlestick pattern. The argument for a pullback hinges on the appearance of a Shooting Star candlestick coupled with negative RSI divergence below resistance at 10560, the 50% Fibonacci retracement. A break below the 38.2% level at 10513 on a daily closing basis exposes a rising trend line established from the July 1 low, now at 10492. Alternatively, a move above 10560 clears the way for a challenge of the 61.8% Fib at 10606.
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.