US Dollar Technical Analysis– Prices invalidated a bearish Dark Cloud Cover candlestick pattern to break above resistance at 10822, the 50% Fibonacci expansion. Buyers now target the 61.8% level at 10922, with a break above that exposing the 76.4% Fib at 11045. Negative RSI divergence warns of ebbing upward momentum however and hints the move higher may be short-lived. The 10822 mark has been recast as near-term support, with a reversal back beneath that initially eyeing the 38.2% expansion at 10722.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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