US Dollar Technical Analysis: Struggling at 6-Year High
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11796, 11740, 11653
- Resistance:11876, 11963, 12103
The Dow Jones FXCM US Dollar may be preparing to decline after prices put in a bearish Evening Star candlestick pattern. Negative RSI divergence reinforces the case for a downside scenario. Near-term trend line support is at 11796, with a break below that on a daily closing basis exposing the 14.6% Fibonacci retracement 11740. Alternatively, a push above the 11854-76 zone (March 2009 high, 14.6% Fib expansion) clears the way for a test of the 23.6% threshold at 11963.
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.
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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