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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11434, 11379, 11291
- Resistance:11522, 11577, 11648
The Dow Jones FXCM US Dollar Index stalled below its five-year high after posting the largest daily advance in 18 months. Negative RSI divergence warns of ebbing upside momentum, hinting a double top may be in the works. Near-term support is at 11489, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 23.6% level at 11379. Alternatively, a turn above the December 8 high at 11522 clears the way for a test of the 38.2% Fib expansion at 11577.
We remain broadly bullish on the US Dollar against its leading counterparts in line with our long-term fundamental outlook. As such, we remain long via the Mirror Trader US Dollar currency basket.
Daily Chart - Created Using FXCM Marketscope
** 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
