US Dollar Technical Analysis: Monthly Top in the Crosshairs

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Talking Points:

• 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