US Dollar Technical Analysis: Topping May Be in Progress

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Talking Points:

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

  • Support: 11005, 10956, 10878

  • Resistance:11060, 11108, 11156

The Dow Jones FXCM US Dollar Indexpulled back as expected after putting in a Shooting Star candlestick. A daily close below the 14.6% Fibonacci retracement at 11005 exposes the 23.6% level at 10956. Alternatively, a reversal above the 11048-60 area marked rising trend line support-turned-resistance and the 38.2% Fib expansion clears the way for a test of the 50% threshold at 11108.

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: Topping May Be in Progress
US Dollar Technical Analysis: Topping May Be in Progress

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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