5 Nov 2013
DXY takes first step towards a mucn needed pullback Monday; initial pullback target 80.11
FXstreet.com (Barcelona) - The US Dollar Index (DXY) drifted lower Monday for no particular reason at all – especially considering the US data flow should have, in theory, boosted the DXY.
DXY to be pushed around by data mostly from outside the US Tuesday
While the big US data is not due out until later this week, Tuesday’s action in DXY will be primarily driven by news and events outside the US. The scheduled news flow includes: China’s Services PMI; Reserve Bank of Australia’s rate decision and commentary; Bank of Japan’s Kuroda speaking; European Commission Economic forecast; European PPI; and, the US ISM Manufacturing PMI.
Technical outlook for the DXY
Technicians say the DXY bumped right into horizontal line resistance (from the 10/21/13 peak) last week at 80.75. The next resistance above that is the 9/16 close (and lower edge of downside gap) at 81.29. Support comes in at the first two meaningful Fibonacci retracements of the recent rally at 80.11 and 79.90.
DXY to be pushed around by data mostly from outside the US Tuesday
While the big US data is not due out until later this week, Tuesday’s action in DXY will be primarily driven by news and events outside the US. The scheduled news flow includes: China’s Services PMI; Reserve Bank of Australia’s rate decision and commentary; Bank of Japan’s Kuroda speaking; European Commission Economic forecast; European PPI; and, the US ISM Manufacturing PMI.
Technical outlook for the DXY
Technicians say the DXY bumped right into horizontal line resistance (from the 10/21/13 peak) last week at 80.75. The next resistance above that is the 9/16 close (and lower edge of downside gap) at 81.29. Support comes in at the first two meaningful Fibonacci retracements of the recent rally at 80.11 and 79.90.