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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10581 (38.2% Fib exp.), 10554 (50% Fib ret.)
- Resistance: 10620 (horizontal pivot), 10660 (23.6% Fib ret.)
The Dow Jones FXCM US Dollar Index is testing through support at 10581, the 38.2% Fibonacci expansion. A break below this barrier on a daily closing basis exposes the 50% level at 10527. Alternatively, a reversal back above 10581 sees the first layer of significant resistance at 10648, the 23.6% Fib.
The greenback is on pace to produce its first back-to-back weekly decline since mid-October, with only a single positive daily close recorded over the past nine trading sessions. Looking through near-term volatility however, we maintain a broadly supportive long-term outlook and remain long the US Dollar 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