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Talking Points:
- 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 may be vulnerable to a correction lower after an expected advance brought prices to a five-month high. The case for a downswing rests on the appearance of a Spinning Top candlestick coupled with negative RSI divergence. Near-term support is at 10554, the 23.6%Fibonacci expansion, with a break below that on a daily closing basis exposing the 14.6% level at 10536. Alternatively, a push above the 38.2% Fib at 10582 clears a path to test the 50% expansion at 10606.
We remain broadly bullish on the US Dollar against its leading counterparts in line with ourlong-term fundamental outlook. As such, we remain long via theMirror Trader US Dollar currency basket.
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
