14 Nov 2013
DXY begins to correct lower in earnest on Yellen dovish musings
FXstreet.com (Barcelona) - The US Dollar Index (DXY) is correcting lower in decisive fashion now after days of delaying the inevitable Yellen-related decline. Once she started to share her thoughts on life, it was “game on” for the DXY bears.
DXY correction not unexpected – but how far will it go?
The DXY is obviously reacting to the Yellen headlines currently. But once the initial reaction passes, will positive US data continue to flow in and force the Fed to more seriously consider QE-tapering? Only time will tell –but it seems as though the situation is just as it was with Bernanke and his cohorts. That is – you have Bernanke dovish with many members of the FOMC failing to see any benefit to continuing on with uninterrupted QE. In fact, there may be more of a gulf between Yellen and her cohorts than there was with Bernanke (based on her comments today).
Technical outlook for the DXY
The DXY is now wel on its way to its first three downside targets at 80.52, 80.23 and 79.94 – all of which are meaningful Fibonacci retracements of the recent up move. Resistance comes in at the most recent peak at 81.46.
DXY correction not unexpected – but how far will it go?
The DXY is obviously reacting to the Yellen headlines currently. But once the initial reaction passes, will positive US data continue to flow in and force the Fed to more seriously consider QE-tapering? Only time will tell –but it seems as though the situation is just as it was with Bernanke and his cohorts. That is – you have Bernanke dovish with many members of the FOMC failing to see any benefit to continuing on with uninterrupted QE. In fact, there may be more of a gulf between Yellen and her cohorts than there was with Bernanke (based on her comments today).
Technical outlook for the DXY
The DXY is now wel on its way to its first three downside targets at 80.52, 80.23 and 79.94 – all of which are meaningful Fibonacci retracements of the recent up move. Resistance comes in at the most recent peak at 81.46.