US Dollar Technical Analysis: Monthly Top in the Crosshairs
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11584, 11494, 11346
- Resistance:11715, 11772, 11888
The Dow Jones FXCM US Dollar Index continues to tread water below the swing high set in early January. Near-term support is at 11584, the January 15 low, with a break below that on a daily closing basis exposing resistance-turned-support at 11494. Alternatively, a turn above the January 8 high at 11715 clears the way for a test of the 23.6% Fibonacci expansion at 11772.
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.
NOTE: FXCM Inc, Parent Company of DailyFX, will raise margin requirements given volatility risk
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.