US Dollar Technical Analysis: New Six-Year High Established

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

• US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
• Support: 11577, 11489, 11434
• Resistance:11648, 11719, 11807

The Dow Jones FXCM US Dollar Index is attempting to continue building higher having started 2015 off with the largest daily rally in three weeks. A daily close above the 50% Fibonacci expansionat 11648 exposes the 61.8% level at 11719. Alternatively, a reversal below the 38.2% Fib at 11577 opens the door for a challenge of the 11489-522 area marked by the December 8 top and the 23.6% expansion.

Our long-term fundamental outlook calls for a broadly stronger US Dollar against its major currency counterparts. With that in mind, we are holding 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