Forex: US Dollar Technical Analysis – Wedge Boundary Retested

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Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
  • Support: 10539 (wedge top), 10495 (Mar 19 low)
  • Resistance: 10590 (23.6% Fib exp.), 10649 (38.2% Fib exp.)

The Dow Jones FXCM US Dollar Index pulled back from resistance at 10590, the 23.6% Fibonacci expansion to retest broken falling wedge resistance-turned-support at 10539. Breaking back below this barrier initially targets the March 19 low at 10495. Alternatively, a reversal back above 10590 exposes the 38.2% level at 10649.

Our long-term fundamental outlook continues to favor a stronger US Dollar against the benchmark currency’s top counterparts in the coming months. With that in mind, we will continue to hold a long position in the greenback via the Mirror Trader US Dollar currency basket. **

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dailyclassics_us_dollar_index_body_Picture_3.png, Forex: US Dollar Technical Analysis – Wedge Boundary Retested

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

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