Monday, June 30, 2014

US Dollar Technical Analysis ? Three-Year Support in Focus




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Talking Points:



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


  • Support: 10401 , 10375, 10323


  • Resistance:10440, 10495, 10589


The Dow Jones FXCM US Dollar Index remains in a precarious position as prices continue to hover above multi-year rising trend support set from July 2011. This barrier (now at 10401) is reinforced by a falling Wedge formation bottom. A daily close below that would suggest a major reversal is in progress and initially expose double bottom support at 10375, followed by the June 2012 high at 10323.Wedge resistance is at 10440, with a move above that exposing the 10474-95 cluster. The next topside barrier after that stands at 10531, May 28 high.



Our long-term fundamental outlook continues to call for a broadly stronger US Dollar against its leading counterparts. With that in mind, we remain long via theMirror Trader US Dollar currency basket.


US Dollar Technical Analysis – Three-Year Support in Focus


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





US Dollar Technical Analysis ? Three-Year Support in Focus

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