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Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
  • Support: 12105,12076, 12052
  • Resistance:12153, 12201, 12230

The Dow Jones FXCM US Dollar Index advanced as expected after breaking higher from a Triangle chart formation. Near-term resistance is in the 12149-53 area (March 13 high, 100% Fibonacci expansion), with a break above that on a daily closing basis exposing the 123.6% level at 12201. Alternatively, a move back below the76.4% Fib at 12105 clears the way for a test of the 61.8% expansion at 12076.

Our long-term fundamental 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.

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US Dollar Technical Analysis: February Top Under Pressure

Daily Chart – Created Using FXCM Marketscope

** 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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