US Dollar Technical Analysis: Early Pullback Warning Seen

By DailyFx | August 07, 2014 AAA

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Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
  • Support: 10513, 10481, 10456
  • Resistance:10560, 10606, 10663

The Dow Jones FXCM US Dollar Index may be setting up for a pullback after rallying as expected having put in a Bullish Engulfing candle pattern. The emergence of negative RSI divergence below resistance at 10560, the 50% Fibonacci retracement, warns of ebbing upside momentum. A daily close below the 38.2% level at 10513 exposes a rising trend line established from the July 1 low, now at 10481. Alternatively, a push through resistance opens the door for a test of the 61.8% Fib at 10606.

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.

US Dollar Technical Analysis: Early Pullback Warning Seen

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.

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