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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10627, 10595, 10576
- Resistance:10652, 10677, 10709
The Dow Jones FXCM US Dollar Index is pressing higher after launching a rally as expectedfollowing the formation of a Bullish Engulfing candle pattern. Near-term resistance is at 10652, 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 10677. Alternatively, a reversal below the 38.2% Fib at 10627 clears the way for a test of the 23.6% expansion at 10595.
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
