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Forex: US Dollar Technical Analysis – Recovery Takes First Steps

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Talking Points:

The Dow Jones FXCM US Dollar Index is edging higher as expected after putting in a bullish Morning Star candlestick pattern above support at 10520, the February 17 low. Near-term resistance is at 10599, the 38.2% Fibonacci retracement, with a break above that initially exposing the 50% level at 10629.

On a broad-based long-term basis, our trend bias continues to favor a stronger US Dollar in the months ahead. As such, we remain long the greenback via the Mirror Trader US Dollar currency basket for the time being. **

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

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