Thursday, October 30, 2014

US Dollar Technical Analysis: Near-Term Pullback Ahead?




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Talking Points:



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


  • Support: 10959, 10845, 10753


  • Resistance:11143, 11216, 11308


The Dow Jones FXCM US Dollar Indexappears to be on track to resume its longer-term rising trend after completing a Flag continuation pattern last week. A daily close above the 11102-43 area marked by the 23.6% Fibonacci expansion and the October 3 high exposes the 38.2% level at 11216. The appearance of a Shooting Star candle warns a near-term pullback may be in the cards however. A turn below the 10959-78 zone (rising trend line, 23.6% Fib retracement) clears the way for a test of the 38.2% threshold at 10845.



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: Near-Term Pullback Ahead?


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: Near-Term Pullback Ahead?

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