Forex: US Dollar Technical Analysis – March Low Under Pressure
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Talking Points:
US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
Support: 10492-502 (Mar 7 low, 38.2% Fib exp.), 10462 (50% Fib exp.)
Resistance: 10529 (23.6% Fib exp.), 10574 (trend line)
The Dow Jones FXCM US Dollar Index edged below support at 10529, the 23.6% Fibonacci expansion, to expose the March 7 low at 10502. This barrier is reinforced by the 38.2% Fib at 10492. A break below the latter level targets the 50% expansion at 10462. Alternatively, a reversal above 10529 opens the door for a test of falling trend line resistance at 10574.
On balance, we maintain that long-term trend dynamics continue to favor a stronger US Dollar. As such, we remain long via the Mirror Trader US Dollar currency basket. **
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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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