9 Dec 2013
DXY has more downside work to do following break of 80.53 last week; 79.85 next stop
FXstreet.com (Barcelona) - The DXY has remained under selling pressure despite some positive data on the US economic front – a testament to the “relative strength” factor in dealing with currencies. When will the world buy into US strength?
DXY to be pushed around by European data and the Fed Head speeches later on Monday
With the bulk of Chinese and Japanese data behind them for Monday’s session, DXY traders will now focus their attention on German Trade Balance and Industrial Production data and European Sentix Investor Confidence numbers for the next several hours and then on US Fed leader speeches (Bullard, Lacker and Fisher) during the US session.
Technical outlook for the DXY
Technicians are saying the DXY broke below key support at 80.53 which opened up more downside potential – to at least 79.85 and possibly down to 79.63. The DXY bulls can still make a stand down there and rocket the greenback higher, but they certainly would loose some more of their bravado should 79.63 be broken. Resistance for DXY comes in at the previous support of 80.53.
DXY to be pushed around by European data and the Fed Head speeches later on Monday
With the bulk of Chinese and Japanese data behind them for Monday’s session, DXY traders will now focus their attention on German Trade Balance and Industrial Production data and European Sentix Investor Confidence numbers for the next several hours and then on US Fed leader speeches (Bullard, Lacker and Fisher) during the US session.
Technical outlook for the DXY
Technicians are saying the DXY broke below key support at 80.53 which opened up more downside potential – to at least 79.85 and possibly down to 79.63. The DXY bulls can still make a stand down there and rocket the greenback higher, but they certainly would loose some more of their bravado should 79.63 be broken. Resistance for DXY comes in at the previous support of 80.53.