Forex: US Dollar Technical Analysis – Holding at February Low
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Talking Points:
US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
Support: 10525 (38.2% Fib exp.), 10497 (50% Fib exp.)
Resistance: 10565 (trend line), 10615 (Feb 27 high)
The Dow Jones FXCM US Dollar Index is stalling at support in the 10520-25 area marked by the February 17 low and the 38.2% Fibonacci expansion after breaking a rising trend line set from September 2012. A further push downward targets the 50% level at 10497. Alternatively, a reversal back above the trend line (now at 10565) eyes the February 27 high at 10615.
While the greenback remains in a precarious position, our structural long-term view continues to favor gains. As such, we remain long the greenback via the Mirror Trader US Dollar currency basket for the time being. **
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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