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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11278, 11227, 11168
- Resistance:11315, 11374, 11422
The Dow Jones FXCM US Dollar Indexis attempting to rebuild upside momentum after a period of consolidation, with prices on pace to test November’s high. Near-term resistance is at 11315, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 11374. Alternatively, a reversal below the 14.6% expansion at 11278 clears the way for a test of the 23.6% Fib retracement at 11227.
Our long-term US Dollar outlook calls for a broadly stronger US Dollar against its major currency counterparts. With that in mind, we are holding 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