US Dollar Technical Analysis: Candle Pattern Hints at Losses
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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 turned lower as expected, completing a bearish Evening Star candlestick pattern and hinting at further losses ahead. Negative RSI divergence bolsters the case for a downward scenario. A daily close below the 14.6%Fibonacci retracement at 10547 exposes the 23.6% level at 10528. Alternatively, a move above the 38.2% Fib expansion at 10582 opens the door for a challenge of the 50% threshold 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.