Tanalys

US Dollar Technical Analysis: Three-Month Uptrend at Risk

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Talking Points:

The Dow Jones FXCM US Dollar Index broke through range support to hit the lowest level in a month. Near-term support is at 11937 (trend line, 38.2% Fibonacci retracement), with a break below that on a daily closing basis exposing the 50% level at 11898. Alternatively, a move above the 23.6% Fib at 11985 opens the door for a challenge of the June 1 high at 12043.

We remain broadly bullish on the US Dollar against its leading counterparts in line with our long-term fundamental outlook. As such, we remain long via the Mirror Trader US Dollar currency basket.

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** 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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