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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10520 (Feb 17 low), 10492 (38.2% Fib exp.)
- Resistance: 10599 (38.2% Fib ret.), 10629 (50% Fib ret.)
The Dow Jones FXCM US Dollar Index continues to tread water in a familiar range between the February 17 low at 10520 and the 38.2% Fibonacci retracement at 10599. A push above resistance initially exposes the 50% level at 10629. Alternatively, a drop through support on a daily closing basis targets the 38.2% Fib expansion at 10492.
Our long-term trend analysis continues to favor a stronger US Dollar against its leading counterparts in the months ahead. With that in mind, we continue to hold a long position 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