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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11792, 11732, 11664
- Resistance: 11834, 11888, 11937
The Dow Jones FXCM US Dollar Index may be preparing to turn higher after prices put in a bullish Morning Star candlestick pattern. Near-term resistance is in the 11823-34 area (23.6% Fibonacci expansion, horizontal pivot), with a break above that on a daily closing basis exposing the 38.2% level at 11888. Alternatively, a turn below the 14.6% Fib at 11792 opens the door for a challenge of the June 18 low at 11732.
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 the Mirror Trader US Dollar currency basket.
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** 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