30 Dec 2013
DXY holds support at 79.75 last week. Will it turn higher as it should post-tapering?
FXstreet.com (Barcelona) - The DXY managed to hold important short-term support at 79.75 last week – which is a welcome bullish change for DXY bulls who have had to tolerate weeks of counter-intuitive bearish action surrounding the Fed’s tapering announcement.
DXY will be reacting to US, British and EU data this week – no Japan, though
The US Dollar Index has still not broken out to the upside despite the Fed’s tapering announcement two weeks ago. In fact, before the end of last week, the DXY had actually continuously trickled lower right in the face of the Fed’s announced tapering program and buoyant US interest rates.
The data that may affect the DXY this week include:
• Monday – British Nationwide Housing Prices; US Pending Home Sales; US Dallas Fed Manufacturing Index
• Tuesday – US Chicago Purchasing Managers Index; US Consumer Confidence
• Wednesday – New Years Day holiday
• Thursday – German and EU Manufacturing PMI; British Manufacturing PMI; US PMI; US Weekly Jobless Claims; US Construction Spending; US Prices Paid
• Friday – EuroZone CPI; British Consumer Credit; British Mortgage Approvals; BOE Credit Conditions Survey; British Net Lending to Individuals; British Construction PMI; and, the US ISM New York Index
Technical outlook for the DXY
Now that the DXY has managed to hold short-term support at 79.75, though, those bullish of the US Dollar are hoping for some major follow through on the upside. The DXY bulls will need the 80.72 level to be conquered on a closing basis to declare victory in the short-term. A continued failure to conquer that level will only serve to embolden the bears. However, if a breakout above that resistance occurs at some point, a run to at least 82.26 is very likely.
DXY will be reacting to US, British and EU data this week – no Japan, though
The US Dollar Index has still not broken out to the upside despite the Fed’s tapering announcement two weeks ago. In fact, before the end of last week, the DXY had actually continuously trickled lower right in the face of the Fed’s announced tapering program and buoyant US interest rates.
The data that may affect the DXY this week include:
• Monday – British Nationwide Housing Prices; US Pending Home Sales; US Dallas Fed Manufacturing Index
• Tuesday – US Chicago Purchasing Managers Index; US Consumer Confidence
• Wednesday – New Years Day holiday
• Thursday – German and EU Manufacturing PMI; British Manufacturing PMI; US PMI; US Weekly Jobless Claims; US Construction Spending; US Prices Paid
• Friday – EuroZone CPI; British Consumer Credit; British Mortgage Approvals; BOE Credit Conditions Survey; British Net Lending to Individuals; British Construction PMI; and, the US ISM New York Index
Technical outlook for the DXY
Now that the DXY has managed to hold short-term support at 79.75, though, those bullish of the US Dollar are hoping for some major follow through on the upside. The DXY bulls will need the 80.72 level to be conquered on a closing basis to declare victory in the short-term. A continued failure to conquer that level will only serve to embolden the bears. However, if a breakout above that resistance occurs at some point, a run to at least 82.26 is very likely.