25 Oct 2013
US Dollar index testing highs near 79.20
FXstreet.com (Edinburgh) -The US Dollar index, which gauges the greenback vs. its major competitors, is partially recovering yesterday’s losses in the vicinity of 79.20/25.
DXY focus on US data
The index is now bouncing off fresh multi-month lows around the critical support at 79.00, although closing the week in red figures for the second consecutive time and extending the drop from October’s peaks near the 81.00 handle. Ahead in the day, the US docket seems promising as Durable Goods Orders would improve in September 2.0% vs. August’s 0.1% gain. The Reuters/Michigan index is expected lower at 75.0 for the present month. “The USD low seen in 2011 is still considered to have formed a long-term base, but a more complex pattern may be forming with USD weakness continuing into 2014. Near-term price action needs to be closely monitored to determine how such weakness might develop”, commented Tim Riddell, Head of Global Markets Research at ANZ.
DXY key levels
The index is now up 0.04% at 79.22 with the initial resistance at 80.18 (high Oct.4) ahead of 80.64 (high Sep.26) and finally 80.75 (high oct.16). On the downside, a break below 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012).
DXY focus on US data
The index is now bouncing off fresh multi-month lows around the critical support at 79.00, although closing the week in red figures for the second consecutive time and extending the drop from October’s peaks near the 81.00 handle. Ahead in the day, the US docket seems promising as Durable Goods Orders would improve in September 2.0% vs. August’s 0.1% gain. The Reuters/Michigan index is expected lower at 75.0 for the present month. “The USD low seen in 2011 is still considered to have formed a long-term base, but a more complex pattern may be forming with USD weakness continuing into 2014. Near-term price action needs to be closely monitored to determine how such weakness might develop”, commented Tim Riddell, Head of Global Markets Research at ANZ.
DXY key levels
The index is now up 0.04% at 79.22 with the initial resistance at 80.18 (high Oct.4) ahead of 80.64 (high Sep.26) and finally 80.75 (high oct.16). On the downside, a break below 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60 (Sep.14 2012).