US Dollar Technical Analysis: Range Resistance Holds Up
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11740, 11653, 11513
- Resistance:11876, 11963, 12103
The Dow Jones FXCM US Dollar Index issued its largest advance in a month but prices failed to overcome range resistance to secure a breakout. Near-term resistance is in the 11854-76 area (14.6% Fibonacci expansion, March 2009 high), with a break above that on a daily closing basis exposing the 23.6% level at 11963. Alternatively, a below the 14.6% Fib retracementat 11740 opens the door for a challenge of the 23.6% threshold at 11653.
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