US Dollar Technical Analysis: Deeper Losses Seen Ahead
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11980, 11868, 11687
- Resistance:12066, 12177, 12356
The Dow Jones FXCM US Dollar Index declined for a second consecutive day, with prices looking vulnerable to deeper losses. Near-term support is at 11980, the 14.6% Fibonacci retracement, with a break below that on a daily closing basis exposing the 11868-86 area (23.6% level, March 18 low). Alternatively, a push above the 14.6% Fib expansion at 12066 clears the way for a test of the 12149-77 zone (March 13 high, 23.6% expansion).
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.