US Dollar Technical Analysis: Corrective Pullback Risk Remains

03/19/2015 9:00 am EST

Focus: CURRENCIES

Ilya Spivak, of DailyFX.com, takes a technical look at the Dow Jones FXCM Dollar Index and explains that he remains broadly bearish on the US dollar against its leading counterparts in line with his long-term fundamental outlook.

  • US Dollar Technical Strategy: Holding Long via Mirror Trader Basket*
  • Support: 12107,11965, 11854
  • Resistance:12221, 12335, 12477

The Dow Jones FXCM US Dollar Index may be losing steam after hitting a new 11-year high as signs of negative RSI divergence begin to emerge. A daily close back below the 38.2% Fibonacci expansion at 12407 exposes the 23.6% level at 11965. Alternatively, a push above the 50% Fib at 12221 opens the door for a challenge of the 61.8% expansion at 12335.

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

chart
Daily Chart—Created Using FXCM Marketscope
Click to Enlarge

*The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.

By Ilya Spivak, Currency Strategist, DailyFX.com

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