US Dollar Technical Analysis: Trend Break Hints at Losses
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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11904, 11853, 11801
- Resistance: 11968, 12050, 12114
The Dow Jones FXCM US Dollar Index looks vulnerable to deeper losses after narrowly slipping below a trend line capping losses since early May. A daily close below the 38.2% Fibonacci retracement at 11904 exposes the 50% level at 11853. Alternatively, a turn back above the 11968-77 area (23.6% Fib, trend line) clears the way for a test of the 12043-50 zone (June 1 high, 23.6% Fib 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