To receive Ilya's analysis directly via email, please SIGN UP HERE
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 turned lower as expected, carving out a bearish Evening Star candlestick pattern and hinting at deeper pullback is ahead. Negative RSI divergence reinforces the case for weakness. Near-term support is at 10547, 14.6%Fibonacci retracement, with a daily close below that exposing the 23.6% level at 10528. Alternatively, a push above the 38.2% Fib expansion at 10582 clears the way for a test of the 50% threshold 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
