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US Dollar Technical Analysis: Down to Lowest in 2 Weeks

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Talking Points:

The Dow Jones FXCM US Dollar Index moved lower as expected after putting in a bearish Dark Cloud Cover candlestick pattern. A daily close below the 38.2% Fibonacci retracement at 10942 exposes the 50% level at 10880. Alternatively, a turn above the 23.6% Fib at 11019 clears the way for a test of the 14.6% retracement at 11066.

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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