US Dollar Technical Analysis: Probing Toward Monthly Highs

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Talking Points:

• US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
• Support: 11937, 11888, 11829
• Resistance: 11985, 12044, 12149

The Dow Jones FXCM US Dollar Index moved upward as expected after producing a bullish Morning Star candlestick pattern. A daily close above the 61.8% Fibonacci expansion at 11985 exposes the 76.4% level at 12044. Alternatively, a turn below the 50% Fib at 11937 clears the way for a test of the 38.2% level at 11888.

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