US Dollar Technical Analysis: Rally Stalls Below 6-Month High

By DailyFx | August 21, 2014 AAA

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Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
  • Support: 10627, 10595, 10576
  • Resistance:10652, 10677, 10709

The Dow Jones FXCM US Dollar Index is correcting lower after hitting a six-month high having rallied as expected following the appearance of a Bullish Engulfing candle pattern. A daily close below the 38.2% Fibonacci expansion at 10627 exposes the 23.6% level at 10595. Alternatively, a move above the 50% Fib at 10652 opens the door for a challenge of the 61.8% expansion at 10677.

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: Rally Stalls Below 6-Month High

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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