DailyFX.com -

To receive Ilya's analysis directly via email, please SIGN UP HERE

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.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/USD trades below 1.5450

  2. Forex News

    GBP/USD: further losses below 1.5445 – FXStreet

  3. Forex News

    Gold, Crude Oil Waiting for Breakout from Tight Congestion Ranges

  4. Forex News

    EUR/USD dips to fresh monthly lows near 1.0930

  5. Forex News

    USD/JPY: next stop 124.00? – RBS

Trading Center