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US Dollar Technical Analysis: Chart Setup Warns of Pullback

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Talking Points:

The Dow Jones FXCM US Dollar Indexmay turn lower after prices put in a bearish Dark Cloud Cover candlestick pattern. A daily close below the 23.6% Fibonacci retracementat 11019 exposes the 38.2% level at 10942. Alternatively, a reversal above the October 3 high at 11143 clears the way for a test of the 38.2% Fib expansion at 11176.

We remain broadly bullish on the US Dollar against its leading counterparts in line with ourlong-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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