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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11263, 11227, 11168
- Resistance:11298, 11354, 11399
The Dow Jones FXCM US Dollar Indexappears vulnerable to a correction lower having produced a bearish Dark Cloud Cover candlestick pattern. Negative RSI divergence bolsters the case for a downside scenario. A daily close below the 14.6% Fibonacci expansion at 11263 exposes the 23.6% Fib retracement at 11227. Alternatively, a move above the 23.6% expansion at 11298 opens the door for a challenge of the 38.2% threshold at 11354.
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
