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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10468 (38.2% Fib ret.), 10444 (23.6% Fib ret.)
- Resistance: 10488 (50% Fib ret.), 10508 (61.8% Fib ret.)
The Dow Jones FXCM US Dollar Index edged above resistance at 10468, the intersection of the 38.2% Fibonacci retracement and the underside of a falling channel set from mid-February. Buyers now aim to challenge the 50% level at 10488, with a further break above that exposing the 61.8% Fib at 10508. A turn back below 10468 aims for the 23.6% retracement at 10444.
Our long-term fundamental view continues to call for a stronger US Dollar against its key counterparts. As such, we remain long the benchmark currency via theMirror Trader US Dollar currency basket.
Weekly 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