24 Oct 2013
DXY’s recent decline took a pause Wednesday as investors sought the relative safety of the greenback
FXstreet.com (Barcelona) - While it seems odd to think after everything that has transpired recently, the US Dollar Index (DXY) was one of two safe harbors Wednesday as the global markets digested unsettling credit concerns in China.
DXY to get some directional guidance from heavy data flow Wednesday
The US Dollar actually saw some inflows Wednesday as traders sought safe harbor following troubling news regarding massive bad credit write-downs in China. Some technical factors may have been at work as well as the bearish greenback trade has become overcrowded in a hurry.
Thursday, DXY-watchers will be observing the index’s reaction to a litany of data points including: Foreign Investment in Japanese Securities; RBA Governor Lowe speech; EU Council Meeting; German PMI data; EU PMI data; Bank of England’s Governor Carney speech; US Weekly Jobless Claims; US Manufacturing PMI; and US New Home Sales.
Technical outlook for the DXY
Technicians say that now that the DXY broke below projected short-term support at 79.39, the next potential target is the upper edge of a projected range of “correction support” at 78.96. The real “line in the sand” for any remaining DXY bulls, however, comes in at 78.63. The first two hurdles for DXY bulls are Monday’s high of 79.82 and last Wednesday’s high of 80.75.
DXY to get some directional guidance from heavy data flow Wednesday
The US Dollar actually saw some inflows Wednesday as traders sought safe harbor following troubling news regarding massive bad credit write-downs in China. Some technical factors may have been at work as well as the bearish greenback trade has become overcrowded in a hurry.
Thursday, DXY-watchers will be observing the index’s reaction to a litany of data points including: Foreign Investment in Japanese Securities; RBA Governor Lowe speech; EU Council Meeting; German PMI data; EU PMI data; Bank of England’s Governor Carney speech; US Weekly Jobless Claims; US Manufacturing PMI; and US New Home Sales.
Technical outlook for the DXY
Technicians say that now that the DXY broke below projected short-term support at 79.39, the next potential target is the upper edge of a projected range of “correction support” at 78.96. The real “line in the sand” for any remaining DXY bulls, however, comes in at 78.63. The first two hurdles for DXY bulls are Monday’s high of 79.82 and last Wednesday’s high of 80.75.