Tanalys

US Dollar Technical Analysis: Advance Poised to Continue

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Talking Points:

The Dow Jones FXCM US Dollar Indexlooks poised to extend its advance after prices cleared yet another technical barrier. A daily close above the 50% Fibonacci expansion at 11308 exposes the 61.8% level at 11400. Alternatively, a turn below the 38.2% Fib at 11216 opens the door for a challenge of the 11102-43 area marked by the October 3 high and the 23.6% expansion.

We remain broadly bullish on the US Dollar against its leading counterparts in line with our long-term fundamental outlook. As such, we remain long via theMirror 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

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