US Dollar Technical Analysis: Struggling to Break Higher

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Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
  • Support: 10426, 10392, 10354-75
  • Resistance:10442-56, 10513, 10560

The Dow Jones FXCM US Dollar Index is struggling to build upward having reversed higher as expected after producing a Bullish Engulfing candle pattern. Buyers are testing resistance in the 10442-56 area, marked by the July 3 high and the 23.6% Fibonacci retracement. A break above that on a daily closing basis exposes the 38.2% level at 10513. Alternatively, a below rising trend line support at 10426 targets the July 9 low at 10392, followed by a triple bottom in the 10354-75 area.

We remain broadly bullish on the US Dollar against its leading counterparts in line with ourlong-term fundamental outlook. As such, we remain long via theMirror Trader US Dollar currency basket.

US Dollar Technical Analysis: Struggling to Break Higher

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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