Monday, December 29, 2014

US Dollar Technical Analysis: Correction Lower Ahead?




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Talking Points:



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


  • Support: 11489, 11434, 11346


  • Resistance:11577, 11648, 11719


The Dow Jones FXCM US Dollar Index is digesting gains near a five-year high but negative RSI divergence casts doubt on immediate follow-through. A daily close above the 38.2% Fibonacci expansionat 11577 exposes the 50% level at 11648. Alternatively, a reversal below the 11489-522 area marked by the December 8 top and the 23.6% Fib opens the door for a challenge of the 14.6% expansion at 11434.



Our long-term fundamental 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: Correction Lower Ahead?


Daily Chart – Created Using FXCM Marketscope



** 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: Correction Lower Ahead?

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