To receive Ilya's analysis directly via email, please SIGN UP HERE
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10426 (trend line), 10375 (double bottom)
- Resistance:10474-95, 10531 (May 28 high)
The Dow Jones FXCM US Dollar Index turned sharply lower, putting in question the fate of the upside breakout secured in mid-May. Sellers have taken out resistance-turned-support in the 10474-95 area, exposing pivotal rising trend line support set from July 2011 (now at 10426). A break below this barrier on a daily closing basis targets a double bottom at 10375. Alternatively, a reversal back above 10495 opens the door for another test of 10531, the May 28 high.
We remain broadly bullish on the US Dollar against its leading counterparts in line with ourlong-term fundamental outlook. As such, we remain 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.