US Dollar Technical Analysis– Prices moved lower as expected after putting in a Bearish Engulfing candlestick pattern. A mild recovery faltered at resistance marked by the 38.2% Fibonacci retracement at 10655. Sellers now challenge a key support cluster in the 10510-576 area, marked by a longer-term 38.2% Fib, the March 8 high, and a rising trend line set from mid-December 2012. A drop beneath that initially aims for the 50% level at 10397.

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

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