US Dollar Technical Analysis: Risk of Downswing Remains

By DailyFx | August 14, 2014 AAA

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Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
  • Support: 10554, 10536, 10508
  • Resistance:10582, 10606, 10629

The Dow Jones FXCM US Dollar Index may be vulnerable to a correction lower after an expected advance brought prices to a five-month high. The case for a downswing rests on the appearance of a Spinning Top candlestick coupled with negative RSI divergence. Near-term support is at 10554, the 23.6%Fibonacci expansion, with a break below that on a daily closing basis exposing the 14.6% level at 10536. Alternatively, a push above the 38.2% Fib at 10582 clears a path to test the 50% expansion at 10606.

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.

US Dollar Technical Analysis: Risk of Downswing Remains

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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