11 Nov 2013
US Dollar index retreats from highs
FXstreet.com (Edinburgh) -The greenback, gauged by the US Dollar index, is losing the grip on Monday, surrendering initial gains near 81.30.
DXY consolidates beyond 81.00
The USD bullish momentum remains intact on Monday, extending last week’s strong gains above the key resistance at 81.00 after the surprising ECB rate cut plus stronger than expected Payrolls numbers (204K). In the opinion of Jane Foley, Senior Currency Strategist at Rabobank, “The dollar is currently holding on to most of the gains made on the back of last Friday’s payrolls data. However, on the back of our view that a December taper announcement is still unlikely, we would favour selling the USD near-term. The dollar index is currently sitting at the cloud top at 81.149, a break below could see back towards 80.64”.
DXY levels to watch
The index is now losing 0.14% at 81.14 and a breach of 80.38 (low Nov.6) would expose 80.00 (psychological level) and finally 79.31 (low Oct.25). On the upside, the initial resistamce aligns at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5). a breach of 79.31 (low Oct.25) would open the door to 79.13 (low Oct.23) and then 78.93 (low Feb.1).
DXY consolidates beyond 81.00
The USD bullish momentum remains intact on Monday, extending last week’s strong gains above the key resistance at 81.00 after the surprising ECB rate cut plus stronger than expected Payrolls numbers (204K). In the opinion of Jane Foley, Senior Currency Strategist at Rabobank, “The dollar is currently holding on to most of the gains made on the back of last Friday’s payrolls data. However, on the back of our view that a December taper announcement is still unlikely, we would favour selling the USD near-term. The dollar index is currently sitting at the cloud top at 81.149, a break below could see back towards 80.64”.
DXY levels to watch
The index is now losing 0.14% at 81.14 and a breach of 80.38 (low Nov.6) would expose 80.00 (psychological level) and finally 79.31 (low Oct.25). On the upside, the initial resistamce aligns at 81.50 (high Sep.16) followed by 82.50 (high Aug.2) and then 82.67 (high Sep.5). a breach of 79.31 (low Oct.25) would open the door to 79.13 (low Oct.23) and then 78.93 (low Feb.1).