31 Jul 2013
Oversold DXY bounced off of first potential support at 81.63
FXstreet.com (Barcelona) - The US Dollar Index (DXY) took advantage of a quiet session Tuesday to post an oversold bounce ahead of a heavily-anticipated, news-filled Wednesday.
Traders await US GDP and Fed decision, but lots due out before that
Traders in the US Dollar pairs will get a heavy flow of data from around the world Wednesday leading up to the US’s GDP and Fed decision later in the day. The info parade starts with New Zealand Business Confidence and continues with Aussie credit data, Japanese housing starts, Swiss leading indicators, German unemployment, Italian unemployment and Eurozone CPI – all leading up to the US session. Although some of that data is unlikely to influence the DXY index, the individual pairs that contribute to the index could certainly move on the individual data points.
Technical outlook for the DXY
Technicians say that where support comes in for this move in the DXY completely depends on how one draws the Fibonacci projection lines on the chart. They say that major “correction support” for the DXY can come in anywhere from 81.63 to 81.13 and possibly even down to 80.71 – depending on how one draws Fibonacci projection lines. Resistance for DXY comes in at 81.94, the 7/23 close, and is followed by the 7/24 peak at 82.42.
Traders await US GDP and Fed decision, but lots due out before that
Traders in the US Dollar pairs will get a heavy flow of data from around the world Wednesday leading up to the US’s GDP and Fed decision later in the day. The info parade starts with New Zealand Business Confidence and continues with Aussie credit data, Japanese housing starts, Swiss leading indicators, German unemployment, Italian unemployment and Eurozone CPI – all leading up to the US session. Although some of that data is unlikely to influence the DXY index, the individual pairs that contribute to the index could certainly move on the individual data points.
Technical outlook for the DXY
Technicians say that where support comes in for this move in the DXY completely depends on how one draws the Fibonacci projection lines on the chart. They say that major “correction support” for the DXY can come in anywhere from 81.63 to 81.13 and possibly even down to 80.71 – depending on how one draws Fibonacci projection lines. Resistance for DXY comes in at 81.94, the 7/23 close, and is followed by the 7/24 peak at 82.42.