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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10492 (38.2% Fib exp.), 10462 (50% Fib exp.)
- Resistance: 10529 (23.6% Fib exp.), 10570 (trend line)
The Dow Jones FXCM US Dollar Index is edging toward support at 10492, the 38.2% Fibonacci expansion. A push below this boundary on a daily closing basis exposes the 50% expansion at 10462. Alternatively, a reversal above 10529 – the 23.6% Fib – opens the door for a test of falling trend line resistance set from late February, now at 10570.
On balance, our long-term US Dollar fundamental view continues to favor a stronger greenback in the months ahead. As such, we remain long against the benchmark unit against an average of its top counterparts 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