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US Dollar: Digesting Rally from July Low

Published 08/07/2014, 04:22 AM
Updated 07/09/2023, 06:31 AM

Talking Points:

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket **
  • Support: 10513-27, 10481, 10456
  • Resistance:10560, 10606, 10663

The Dow Jones FXCM US Dollar Index is digesting gains after rising as expected following the formation of a Bullish Engulfing candle pattern. Near-term resistance is at 10560, the 50% Fibonacci retracement, with a daily close above that exposing the 61.8% level at 10606. Alternatively, a reversal below resistance-turned-support in the 10513-27 area marked by the May 28 high and 38.2% Fib opens the door for a test of a horizontal pivot in play since late April at 10481.

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.

DX Daily Chart

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