US Dollar Technical Analysis– Prices turned lower as expected, finding initial support at 10803 marked by the 38.2% Fibonacci retracement. A bullish Piercing Line candlestick pattern hints at the potential for renewed upside momentum. However, a Doji candle formed on a test of initial resistance at 10882 – the 23.6% level – points to indecision and injects a degree of doubt in bullish follow-through. Confirmation on a close above 10882 exposes the July 8 high at 11009. Alternatively, a reversal below support aims for the 50% Fib at 10739.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak
To be added to Ilya’s e-mail distribution list, please CLICK HERE
New to FX? Watch this Video. For live market updates, visit the Real Time News Feed