31 Oct 2013
DXY finishes slightly lower and remains just below resistance at 79.82
FXstreet.com (Barcelona) - The US Dollar Index (DXY) finished slightly lower, off the highs of the session and stubbornly below horizontal line resistance at 79.82.
DXY rallied on thoughts that tapering might be on the table
The Dollar Index (DXY) rallied hard following the Fed’s monetary policy statement and commentary on their ongoing QE3 program. The obvious reaction to the commentary was that the Fed was leaving open the chance for tapering in December or January – a supposition that a sizable contingent of analysts believe is pure folly (especially given the likelihood of heated budget debates at right around that same time frame).
Thursday, the DXY is likely to be pushed around by data flowing from around the world, including: Japanese PMI; the Bank of Japan’s interest rate decision and commentary; Japanese housing starts; German Consumer Confidence; German Import Prices; German Retail Sales; EuroZone CPI; EuroZone Unemployment Rate; US Weekly Jobless Claims; and, US Chicago PMI.
Technical outlook for the DXY
Technicians say the DXY bumped right into horizontal line resistance (from the 10/21/13 peak) today. They note that the way the DXY is trading is indicative of a breakout yet to occur. The next resistance is the 10/16 high of 80.75. Support comes in at the low from the last two sessions at 79.45 and is backed up by the recent low of 79.00.
DXY rallied on thoughts that tapering might be on the table
The Dollar Index (DXY) rallied hard following the Fed’s monetary policy statement and commentary on their ongoing QE3 program. The obvious reaction to the commentary was that the Fed was leaving open the chance for tapering in December or January – a supposition that a sizable contingent of analysts believe is pure folly (especially given the likelihood of heated budget debates at right around that same time frame).
Thursday, the DXY is likely to be pushed around by data flowing from around the world, including: Japanese PMI; the Bank of Japan’s interest rate decision and commentary; Japanese housing starts; German Consumer Confidence; German Import Prices; German Retail Sales; EuroZone CPI; EuroZone Unemployment Rate; US Weekly Jobless Claims; and, US Chicago PMI.
Technical outlook for the DXY
Technicians say the DXY bumped right into horizontal line resistance (from the 10/21/13 peak) today. They note that the way the DXY is trading is indicative of a breakout yet to occur. The next resistance is the 10/16 high of 80.75. Support comes in at the low from the last two sessions at 79.45 and is backed up by the recent low of 79.00.