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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11736, 11688, 11638
- Resistance:11801, 11899, 11967
The Dow Jones FXCM US Dollar Index is threatening to break below April’s swing bottom after touching the lowest level in nearly four months. Near-term support is in the 11736-7 area (February 6 low, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing the 50% level at 11688. Alternatively, a move above trend line resistance at 11801 clears the way for a test of the May 5 high at 11899.
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
