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US Dollar Technical Analysis: Prices Recoil From 11-Year High

Ilya Spivak -

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Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
  • Support: 11965, 11854, 11737
  • Resistance:12149, 12221, 12335

The Dow Jones FXCM US Dollar Index reversed downward as expected, making good on bearish cues telegraphed through negative RSI divergence. Near-term support is at 11965, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 11854-78 area (March 2009 high, 14.6% level). Alternatively, a move above the 12107-49 zone (38.2% Fib, March 13 high) clears the way for a test of the 50% expansion at 12221.

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: Prices Recoil From 11-Year High

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

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