US Dollar Technical Analysis: Bulls Return, Set 14-Month High

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Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **

  • Support: 10905, 10827, 10756

  • Resistance:10953, 11031, 11095

The Dow Jones FXCM US Dollar Indexturned sharply higher anew, putting the benchmark unit at the highest level in 14 months against its top counterparts. Near-term resistance is at 10953, the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 38.2% level at 11031. Alternatively, a reversal below the 14.6% Fib at 10905 opens the door for a challenge of the September 16 low at 10827.

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: Bulls Return, Set 14-Month High
US Dollar Technical Analysis: Bulls Return, Set 14-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.

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com


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