US Dollar Classic Technical Report 07.16.2012

Prices recoiled from resistance in the 10209-19 area marked by the 38.2% Fibonacci expansion and 61.8% retracement levels, correcting to retest a falling trend line set from late May swing top. Support is reinforced by the 38.2% retracement at 10139, with a break below that exposing the 10032-67 region. Overall positioning suggests the latest selloff represents a correction in the context of a broadly bullish bias however. Near-term resistance is at 10174.

Dow Jones FXCM US Dollar Index - Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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