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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10551 (trend line from Sep’12)
- Resistance: 10614 (23.6% Fib exp.), 10673 (38.2% Fib exp.)
The Dow Jones FXCM US Dollar Index is continues to push higher after producing the strongest gain in a month yesterday as prices recoil from support at a rising trend line set from September 2012. A break above the 23.6% Fibonacci expansion at 10614 exposes the 38.2% level at 10673. The trend line is now at 10551.
Near-term price action is beginning to turn consistent with our long-term view, which still favors broad-based US Dollar strength in the months ahead. As such, we will continue to hold long USD 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