17 Feb 2015
DXY points to consolidation in the near term – JP Morgan
FXStreet (Edinburgh) - A consolidative pattern will be the most likely scenario for DXY in the near-term, suggested analysts at JP Mprgan.
Key Quotes
“While the short term setup for the broad USD picture maintains a mixed bias, the medium term bullish view is unchanged”.
“Still key levels have thus far capped the advance leading to the current consolidation phase”.
“With positioning and the current overbought setup still weighing on price action, additional consolidation seems likely particularly as recent moves by central banks have failed to extend the prevailing trends”.
“Still, there have been some encouraging signs for the USD consistent with the medium term bias”.
“The DXY highlights the current setup as the struggles to extend through the important 95.53/86 resistance zone has led to the current range”.
“Again, this area includes the January high and the 50% retracement of the decline from the 2001 cycle high. While intact, the focus will stay on the 93.25/00 support zone, which represents the January breakout area and should help define whether a deeper short term retracement can develop".
Key Quotes
“While the short term setup for the broad USD picture maintains a mixed bias, the medium term bullish view is unchanged”.
“Still key levels have thus far capped the advance leading to the current consolidation phase”.
“With positioning and the current overbought setup still weighing on price action, additional consolidation seems likely particularly as recent moves by central banks have failed to extend the prevailing trends”.
“Still, there have been some encouraging signs for the USD consistent with the medium term bias”.
“The DXY highlights the current setup as the struggles to extend through the important 95.53/86 resistance zone has led to the current range”.
“Again, this area includes the January high and the 50% retracement of the decline from the 2001 cycle high. While intact, the focus will stay on the 93.25/00 support zone, which represents the January breakout area and should help define whether a deeper short term retracement can develop".