US Dollar Technical Analysis: Down Trend Boundary Tested
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11638, 11576, 11476
- Resistance: 11759, 11836, 11898
The Dow Jones FXCM US Dollar Index launched a corrective recovery having found support at the lowest level in four months. Near-term resistance is at 11759, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 38.2% level at 11836. Alternatively, a turn below the 61.8% Fib expansion at 11638 clears the way for a test of the 76.4% threshold at 11576.
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