US Dollar Technical Analysis: Pausing to Digest Losses
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11717, 11634, 11515
- Resistance: 11779, 11841, 11886
The Dow Jones FXCM US Dollar Index paused to consolidate after breaking range support following last week’s FOMC-inspired losses. Near-term support is at 11717, the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 11634-40 zone (May 14 low, 76.4% level). Alternatively, a move above the 50% Fib at 11779 opens the door for a challenge of the 11834-41 area (horizontal pivot, 38.2% 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 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.