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: 10869, 10816, 10729
- Resistance:10957, 11008, 11092
The Dow Jones FXCM US Dollar Indexmay be on the verge of a correction lower as negative RSI divergence points to ebbing bullish momentum. Near-term support is at 10913, marked by a rising trend line set from set from late August, with a break below that on a daily closing basis exposing the 14.6% Fibonacci retracement at 10869. Alternatively, a turn above the 14.6% Fib expansion at 10957 opens the door for a challenge of the 23.6% threshold at 11008.
Our long-term US Dollar outlook calls for a broadly stronger US Dollar against its major currency counterparts. With that in mind, we are holding 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
