23 Jul 2013
US Dollar Index sliced through key short-term support at 82.42 Monday
FXstreet.com (Barcelona) - With the troubling weekend news flow and disappointing housing and economic activity data Monday, the US Dollar Index finally succumbed to the pressure and closed below key short-term support at 82.42.
DXY selling pressure intensified throughout the initial session of the week
The DXY started the Monday morning session out on very thin ice trading just above the key 82.42 support level. Bad news out of Detroit and rumors surrounding possible investigations into US investment banks had set the DXY train down the wrong path to start out the week. Additional bad news on the US economic front (weaker-than-expected housing data and a sub-par economic activity index) only served to exacerbate an already bad situation for greenback bulls. The DXY made a few attempts to rally throughout the day Monday, but each rally attempt’s peak only served to set a new lower high on the intraday chart.
Tech outlook for DXY
Technicians are calling for an eventual move in the DXY down to around the 80.71 level before the current correction is over. The question in technicians’ minds is whether there will be a modest bounce sooner-than-later to work off a short-term oversold condition. Short-term resistance for the DXY comes in at the previous support at 82.42 and is followed by the closing high from 7/15 of 83.04. Short-term support for DXY comes in at Monday’s low of 82.05 with the 5/1 closing low at 81.48 below that.
DXY selling pressure intensified throughout the initial session of the week
The DXY started the Monday morning session out on very thin ice trading just above the key 82.42 support level. Bad news out of Detroit and rumors surrounding possible investigations into US investment banks had set the DXY train down the wrong path to start out the week. Additional bad news on the US economic front (weaker-than-expected housing data and a sub-par economic activity index) only served to exacerbate an already bad situation for greenback bulls. The DXY made a few attempts to rally throughout the day Monday, but each rally attempt’s peak only served to set a new lower high on the intraday chart.
Tech outlook for DXY
Technicians are calling for an eventual move in the DXY down to around the 80.71 level before the current correction is over. The question in technicians’ minds is whether there will be a modest bounce sooner-than-later to work off a short-term oversold condition. Short-term resistance for the DXY comes in at the previous support at 82.42 and is followed by the closing high from 7/15 of 83.04. Short-term support for DXY comes in at Monday’s low of 82.05 with the 5/1 closing low at 81.48 below that.