15 Oct 2013
DXY finishes lower on the session despite optimism expressed by risk assets
FXstreet.com (Barcelona) - The US Dollar Index (DXY) only received directional guidance from Washington, DC and virtually no help from US data points, Japan or Europe. That is set to change Tuesday, though, with plenty of data due out from Japan and Europe and Fed Head speeches.
DXY at the mercy of DC developments and global data
The weakness in DXY persisted Monday despite the late-session rally in risk assets. Will the DXY revert to being viewed as a safety asset? Monday’s trading was indicative of just that.
All eyes will continue to be trained on Washington for any developments. However, Tuesday will bring potentially meaningful data points in the form of Japanese Industrial Production, German Import Prices and German and EuroZone Economic Sentiment. Additionally, US Fed Heads William Dudley and Richard Fisher will be speaking.
Technical outlook for DXY
Technicians still say there is one more hurdle to jump at 80.51 for the DXY bulls to officially be in the clear. Above that level, the next resistance would be 80.75. If resistance holds at 80.51 or lower – as it seems it might – we could still see a drop all the way down to the wave “C” target at 79.00.
DXY at the mercy of DC developments and global data
The weakness in DXY persisted Monday despite the late-session rally in risk assets. Will the DXY revert to being viewed as a safety asset? Monday’s trading was indicative of just that.
All eyes will continue to be trained on Washington for any developments. However, Tuesday will bring potentially meaningful data points in the form of Japanese Industrial Production, German Import Prices and German and EuroZone Economic Sentiment. Additionally, US Fed Heads William Dudley and Richard Fisher will be speaking.
Technical outlook for DXY
Technicians still say there is one more hurdle to jump at 80.51 for the DXY bulls to officially be in the clear. Above that level, the next resistance would be 80.75. If resistance holds at 80.51 or lower – as it seems it might – we could still see a drop all the way down to the wave “C” target at 79.00.