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- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support: 10383, 10375, 10354
- Resistance:10431, 10452, 10473
The Dow Jones FXCM US Dollar Index is attempting to build higher as expected after putting in a Bullish Engulfing candle pattern at support set from October 2013. The bulls are trying to reclaim momentum following a corrective pullback to resistance-turned-support marked by the top of a falling channel set from early June (10383). Near-term resistance is at 10431, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 50% level at 10452. Alternatively, a move below support aims for a triple bottom in the 10354-75 area.
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