US Dollar Technical Analysis: Reversal Confirmation Pending
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11599, 11527, 11411
- Resistance:11699, 11796, 11874
The Dow Jones FXCM US Dollar Index looks likely to continue downward following the appearance of a bearish Evening Star candle pattern having reversed as expected. A daily close below the 14.6% Fibonacci retracementat 11599 exposes the 23.6% level at 11527. Alternatively, a reversal above the 23.6% Fib expansion at 11699 opens the door for a challenge of the 38.2% threshold at 11796.
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 theMirror 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.