US Dollar Technical Analysis: Prices Drop to Monthly Low
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11790, 11731, 11634
- Resistance: 11839, 11887, 11946
The Dow Jones FXCM US Dollar Index broke downward out of consolidation, hitting the weakest level in a month. Near-term support is at 11790, the 61.8% Fibonacci retracement, with a break below that on a daily closing basis exposing the 76.4% level at 11731. Alternatively, a move above the 11834-9 area (May 20 close, 50% Fib) opens the door for a challenge of the 38.2% retracement at 11887.
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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** 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.