US Dollar Technical Analysis: Prices Drop Most in a Month

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Talking Points:

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


• 
  Support: 11809, 11754, 11719
  


• 
  Resistance:11864, 11899, 11927
  

The Dow Jones FXCM US Dollar Index continues to correct downward, sliding to the weakest level in two months. A daily close below the 100% Fibonacci expansion at 11809 exposes the 123.6% level at 11754. Alternatively, a move above the 76.4% Fib at 11864 opens the door for a challenge of the 61.8% expansion at 11899.

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.

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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: Prices Drop Most in a Month