US Dollar Technical Analysis: Prices Drop Most in a Year
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10845, 10753, 10661
- Resistance:10984, 11076, 11143
The Dow Jones FXCM US Dollar Index declined as expected after putting in a bearish Dark Cloud Cover candlestick pattern, issuing the largest daily drop in a year. Near-term support is at 10845, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposingthe 10753-56 area marked by the January 2014 and the 50% level. Alternatively, a reversal above support-turned-resistance at 10984 opens the door for a challenge of October 15 high at 11076.
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