US Dollar Technical Analysis: Sellers Return After a Pause
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11019, 10942, 10880
- Resistance:11069, 11146, 11209
The Dow Jones FXCM US Dollar Indexcorrected downward as expected after prices produced a bearish Dark Cloud Cover candlestick pattern. Near-term support is at 10942, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 10880. Alternatively, a reversal above the 23.6% Fib expansion at 11069 opens the door for a challenge of the 38.2% threshold at 11146.
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