US Dollar Technical Analysis: Downside Reversal Risk Remains

To receive Ilya’s analysis directly via email, please SIGN UP HERE

Talking Points:

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


• 
  Support: 11734, 11648, 11509
  


• 
  Resistance:11888, 11983, 12077
  

The Dow Jones FXCM US Dollar may be readying to turn lower after producing a bearish Evening Star candlestick pattern. A daily close below the intersection of the 14.6% Fibonacci retracement and a rising trend line at 11734 exposes the 23.6% level at 11648. Alternatively, a reversal above the 11854-88 area marked by the March 2009 high and the 38.2% level opens the door for a challenge of the 50% Fib at 11983.

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.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

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: Downside Reversal Risk Remains