US Dollar Technical Analysis: Consolidating Downward Reversal
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11965, 11854, 11737
- Resistance:12149, 12221, 12335
The Dow Jones FXCM US Dollar Index reversed downward as expected, making good on bearish cues telegraphed through negative RSI divergence. Near-term support is at 11965, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 11854-78 area (March 2009 high, 14.6% level). Alternatively, a move above the 12107-49 zone (38.2% Fib, March 13 high) clears the way for a test of the 50% expansion at 12221.
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.
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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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.