US Dollar Technical Analysis: March High in the Crosshairs
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11970, 11858, 11679
- Resistance:12177, 12356, 12502
The Dow Jones FXCM US Dollar Index broke higher out of a Triangle chart pattern as expected, hinting at continued gains ahead. Near-term resistance is in the 12149-77 area (March 13 high, 23.6% Fibonacci expansion), with a break above that on a daily closing basis exposing the 38.2% level at 12356. Alternatively, a reversal below 12066 (14.6% expansion, Triangle top) clears the way for a test of the Triangle floor at 11974.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.