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15 Aug 2013
DXY correcting lower after failing to break above 81.88 resistance
FXstreet.com (Barcelona) - The US Dollar Index (DXY) began to correct lower after topping out for the very short-term at just under 81.88. The action in the DXY echoed that of the 10-Year US Treasury Note.
DXY pulls back along with Treasury yields – at least for a day
Slightly lower-than-expected producer price data in the US combined with almost uniformly stronger-than-expected data flow from Germany, Switzerland, the EU and Britain Wednesday to give the DXY the first down day in several sessions Wednesday. The tapering talk is still making the rounds, however – so it will be interesting to see how long the DXY weakness will last.
Technical outlook for the DXY
Technicians still say it is possible to see a move in the DXY down to the 80.51 – 80.66 area despite the recent strength. Once the anticipated low is established, however, they are calling for a sharp move to the upside with an ultimate target of at least 85.00. Shorter-term resistance for DXY comes in at the peak from the last few sessions at 81.88 and is followed by the more important resistance formed by the 7/24 peak at 82.42.
DXY pulls back along with Treasury yields – at least for a day
Slightly lower-than-expected producer price data in the US combined with almost uniformly stronger-than-expected data flow from Germany, Switzerland, the EU and Britain Wednesday to give the DXY the first down day in several sessions Wednesday. The tapering talk is still making the rounds, however – so it will be interesting to see how long the DXY weakness will last.
Technical outlook for the DXY
Technicians still say it is possible to see a move in the DXY down to the 80.51 – 80.66 area despite the recent strength. Once the anticipated low is established, however, they are calling for a sharp move to the upside with an ultimate target of at least 85.00. Shorter-term resistance for DXY comes in at the peak from the last few sessions at 81.88 and is followed by the more important resistance formed by the 7/24 peak at 82.42.