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Talking Points:
- US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
- Support:11216, 11102, 10996
- Resistance:11308, 11400, 11514
The Dow Jones FXCM US Dollar Indexcontinues to march upward, clearing the 2010 high to hit the highest level in over five years. Near-term resistance is at 11308, the 50% Fibonacci expansion, with a break above that on a daily closing basis exposing the 61.8% level at 11400. Alternatively, a reversal below the 38.2% Fib at 11216 clears the way for a test of the 11102-43 area marked by the October 3 high and the 23.6% expansion.
Our long-term US Dollar outlook calls for a broadly stronger US Dollar against its major currency counterparts. With that in mind, we are holding long via theMirror 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
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