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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10570 (channel top)
- Resistance: 10590 (23.6% Fib exp.), 10649 (38.2% Fib exp.)
The Dow Jones FXCM US Dollar Index launched a cautious recovery, taking out resistance at the top of a minor falling channel to expose the 23.6% Fibonacci expansion at 10590. A break above this barrier initially targets the 38.2% level at 10649. Channel top support-turned-resistance is now at 10570.
Our long-term US Dollar fundamental outlook continues to favor a stronger greenback against its leading counterparts in the months ahead. As such, we remain long against the benchmark unit against an average of its top counterparts via the Mirror Trader US Dollar currency basket. **
Daily Chart – Created Using FXCM Marketscope 2.0
** 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