US Dollar Technical Analysis: Rally Extends to 5-Month High
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10554, 10536, 10508
- Resistance:10582, 10606, 10629
The Dow Jones FXCM US Dollar Index continues to push higher having reversed upward as expected after putting in a Bullish Engulfing candlestick pattern. A daily close above the 38.2% Fibonacci expansion at 10582 exposes the 50% level at 10606. Negative RSI divergence warns a pullback may be around the corner. A turn below support at 10554, the 23.6% Fib, opens the door for a test of the 14.6% expansion at 10536.
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.