US Dollar Technical Analysis: New Pullback Warning Emerges
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11278, 11219, 11143
- Resistance:11315, 11374, 11422
The Dow Jones FXCM US Dollar Indexmay be topping having hit a five-year high following the formation of a Shooting Star candlestick. Negative RSI divergence bolsters the case for a downside scenario. Near-term support is at 11278, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the November 17 low at 11219. Alternatively, a turn above the 23.6% level at 11315 opens the door for a challenge of the 38.2% Fib at 11374.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.