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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support:10395 (horizontal support shelf), 10332 (trend line from Jul’11)
- Resistance: 10658 (trend line from Mar’13)
The Dow Jones FXCM US Dollar Index continues to tumble, with prices sinking to the lowest level in five months. Taking a step back from near-term volatility to evaluate the big picture however, the uptrend initiated in late July 2011 remains in place. In fact, the recent selloff has brought prices within striking distance of that the upward trajectory’s guiding trend line, now at 10332. This barrier bolstered by a horizontal support shelf dating back to March 2013 at 10395.
Our long-term fundamental outlook continues to favor US Dollar strength and we will look for this support region to hold. As such, we continue to hold a long position via theMirror Trader US Dollar currency basket.Confirmation of uptrend resumption will require in the series of lower highs starting from the top in July 2013, marked by a falling trend line now at 10658.
Weekly 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