5 Sep 2013
An overbought DXY eases back after testing 82.50 projected upside
FXstreet.com (Barcelona) - The US Dollar Index (DXY), which had been on a nice run after bottoming out at 80.75 back on August 20th, continued what appears to just be a corrective pullback after peaking at 82.53 Tuesday.
Decent data from the US not enough to keep the DXY rally going Wednesday
Wednesday brought traders so-so data out of Europe and data out of the US that basically told everyone what they already knew – that the US economy is growing at a moderate pace with little inflationary pressure to speak of. The result on the DXY was that traders decided to let the greenback “come back in” and relieve some of the overbought condition that had developed.
Thursday will be an even more eventful day for the US Dollar pairs including the following:
* The Bank of Japan rate decision; German Factory Orders; Bank of England rate decision; ECB rate decision; US ADP Employment Change; US Weekly Jobless Claims; US Non-Farm Productivity & Labor Costs; US Factory Orders; US ISM Non-Manufacturing PMI; and the Fed’s Narayana Kocherlakota will be speaking;
Technical outlook for the DXY
Technicians remain bullish on the DXY overall, but acknowledge that it hit a Fibonacci target at 82.50 and has begun a “fourth wave” consolidation with a likely downside limit of 81.99. They say to look for a move up towards 83 – 85 once the consolidation phase runs its course.
Decent data from the US not enough to keep the DXY rally going Wednesday
Wednesday brought traders so-so data out of Europe and data out of the US that basically told everyone what they already knew – that the US economy is growing at a moderate pace with little inflationary pressure to speak of. The result on the DXY was that traders decided to let the greenback “come back in” and relieve some of the overbought condition that had developed.
Thursday will be an even more eventful day for the US Dollar pairs including the following:
* The Bank of Japan rate decision; German Factory Orders; Bank of England rate decision; ECB rate decision; US ADP Employment Change; US Weekly Jobless Claims; US Non-Farm Productivity & Labor Costs; US Factory Orders; US ISM Non-Manufacturing PMI; and the Fed’s Narayana Kocherlakota will be speaking;
Technical outlook for the DXY
Technicians remain bullish on the DXY overall, but acknowledge that it hit a Fibonacci target at 82.50 and has begun a “fourth wave” consolidation with a likely downside limit of 81.99. They say to look for a move up towards 83 – 85 once the consolidation phase runs its course.