US Dollar Technical Analysis: Corrective Downswing Signaled
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11211, 11143, 11110
- Resistance:11246, 11295, 11329
The Dow Jones FXCM US Dollar Indexappears vulnerable to a correction lower having produced a bearish Dark Cloud Cover candlestick pattern. A daily close below the 23.6% Fibonacci retracement at 11211 exposes the 11143-55 area marked by the October 3 high and the 38.2% level. Alternatively, a turn above the 14.6% retracement at 11246 opens the door for a challenge of the 50% Fib expansion at 11295.
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