Thursday, July 31, 2014

US Dollar Technical Analysis: Prices Soar to 4-Month High




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Talking Points:



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


  • Support: 10513, 10481, 10456


  • Resistance:10531, 10560, 10606


The Dow Jones FXCM US Dollar Index continues to advance as expected after putting in a Bullish Engulfing candle pattern at support set from October 2013. A daily close above the 38.2% Fibonacci retracement at 10513 has exposed the May 28 high at 10531. Pushing further beyond that targets the 50% level at 10560. Alternatively, reversal back below 10513 opens the door for a challenge of a horizontal pivot at 10481, followed by the intersection of a rising trend line set from the July 1 low and the 23.6% Fib at 10456.



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: Prices Soar to 4-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





US Dollar Technical Analysis: Prices Soar to 4-Month High

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