US Dollar Technical Analysis – Grinding Through Resistance

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Talking Points:

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

  • Support: 104446 (channel top)

  • Resistance: 10474-95, 10589-619

The Dow Jones FXCM US Dollar Index appears to have set a major double bottom at 10375, the October 2013 bottom. An upward trend change is being hinted by a break above resistance at the top of a falling channel that had guided the downward trajectory since the beginning of the year. Resistance is in the 10474-95 area, with a break above that clearing the way for a move to challenge the 10589-619 region. The channel top, now at 10446, has been recast as near-term support.

We remain broadly bullish on the US Dollar against its leading counterparts in line with our long-term fundamental outlook. As such, we remain long via theMirror Trader US Dollar currency basket.

US Dollar Technical Analysis – Grinding Through Resistance
US Dollar Technical Analysis – Grinding Through Resistance

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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