Forex: US Dollar Technical Analysis – March Swing Low in Focus
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Talking Points:
US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
Support: 10495-500 (Mar 19 low, 38.2% Fib exp.), 10470 (50% Fib exp.)
Resistance: 10595 (38.2% Fib ret.), 10626 (50% Fib ret.)
The Dow Jones FXCM US Dollar Index continues to oscillate in a choppy range below resistance at 10595, the 38.2% Fibonacci retracement. A break below near-term support in the 10495-500 area, marked by the 38.2% Fib expansion and the March 19 low, exposes the 50% mark at 10470. Alternatively, a reversal above resistance aims for the 50% Fib retracement at 10626.
On the whole, our long-term outlook still calls for US Dollar appreciation against its leading currency counterparts. With that in mind, we remain long the benchmark unit via the Mirror Trader US Dollar currency basket. **
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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