7 Aug 2013
DXY bucks higher interest rates; heading lower towards 81.13 target
FXstreet.com (Barcelona) - The US Dollar Index (DXY) ignored higher Treasury yields and more “tapering” talk out of Federal Reserve leaders and headed lower Tuesday as traders gave more weight to short-term strength in overseas currencies.
DXY heading lower continues to frustrate traders
Many analysts and traders have been calling for higher yields and a higher DXY in response to a roaring stock market, a moderately improving US economy and increasing chatter out of the Federal Reserve hinting at plans to cut back on the Fed’s bond buying program. What they expect and what they get are clearly two different things.
Global traders took in all of the headlines Tuesday and surprised the theorists with another sharp move lower in the DXY – despite higher Treasury yields and despite the Fed heads talking “tapering”.
Technical outlook for the DXY
Technicians say that a test of 81.63 is nearly a foregone conclusion for the DXY and that the actual trading target is 81.13 – with 80.71 as an extreme target. Resistance for DXY comes in at the 7/24 peak at 82.42 and is backed up by the 7/18 close at 82.82.
DXY heading lower continues to frustrate traders
Many analysts and traders have been calling for higher yields and a higher DXY in response to a roaring stock market, a moderately improving US economy and increasing chatter out of the Federal Reserve hinting at plans to cut back on the Fed’s bond buying program. What they expect and what they get are clearly two different things.
Global traders took in all of the headlines Tuesday and surprised the theorists with another sharp move lower in the DXY – despite higher Treasury yields and despite the Fed heads talking “tapering”.
Technical outlook for the DXY
Technicians say that a test of 81.63 is nearly a foregone conclusion for the DXY and that the actual trading target is 81.13 – with 80.71 as an extreme target. Resistance for DXY comes in at the 7/24 peak at 82.42 and is backed up by the 7/18 close at 82.82.