Talking Points:
- US Dollar Technical Strategy: Holding Long
- Support: 11985, 11937, 11898
- Resistance: 12043, 12149, 12204
The Dow Jones FXCM Dollar is back to test monthly highs after rebounding from range support. A daily close above the June 1 high at 12043 exposes a double top at 12149. Alternatively, a turn below the 23.6% Fibonacci retracement at 11985 clears the way for a test of the 38.2% level at 11937.
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.