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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 11102, 10982, 10918
- Resistance:11143, 11216, 11308
The Dow Jones FXCM US Dollar Indexextended to the highest level in over four years having marked uptrend resumption with a breakout from a Flag pattern. Near-term resistance is at 11143, the October 3 high, with a break above that on a daily closing basis exposing the 38.2% level at 11216. Alternatively, a reversal below the 23.6% Fib at 11102 opens the door for a challenge of trend line support at 10982.
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