24 Jul 2013
DXY getting hammered again after failing re-test of 82.42 previous support
FXstreet.com (Barcelona) - The US Dollar Index (DXY) tried briefly to recapture its broken support level at 82.42 Tuesday but was quickly rejected and is back to testing the Tuesday lows early Wednesday morning ahead of a flurry of global economic data.
A failed attempt to reverse Monday’s break of 82.42 support quickly led to more selling in DXY
The DXY was getting bid all the way up to 82.38 as the European markets were opening on Tuesday. That rally attempt began to fail after European equity markets opened, though, and really picked up downside momentum once more disappointing US economic data was released at 12:30pm GMT. The DXY finished just off the lows of the session and has not really made any serious rally attempts thus far early on Wednesday.
Technical outlook for DXY
Technicians are calling for an eventual move in the DXY down to around the 80.71 level before the current correction is over. “As the DXY is still reading oversold on short-term indicators, bounce attempts are to be expected”, says The Sea Change Report’s Tim Thielen, CMT. But, other technicians say that unless previous support at 82.42 is recaptured, all rallies are to be sold until 80.71 is approached. Short-term resistance for the DXY comes in at the previous support at 82.42 and is followed by the closing high from 7/15 of 83.04. Short-term support for DXY comes in at Tuesday’s low of 81.93 with the 5/1 closing low at 81.48 below that.
A failed attempt to reverse Monday’s break of 82.42 support quickly led to more selling in DXY
The DXY was getting bid all the way up to 82.38 as the European markets were opening on Tuesday. That rally attempt began to fail after European equity markets opened, though, and really picked up downside momentum once more disappointing US economic data was released at 12:30pm GMT. The DXY finished just off the lows of the session and has not really made any serious rally attempts thus far early on Wednesday.
Technical outlook for DXY
Technicians are calling for an eventual move in the DXY down to around the 80.71 level before the current correction is over. “As the DXY is still reading oversold on short-term indicators, bounce attempts are to be expected”, says The Sea Change Report’s Tim Thielen, CMT. But, other technicians say that unless previous support at 82.42 is recaptured, all rallies are to be sold until 80.71 is approached. Short-term resistance for the DXY comes in at the previous support at 82.42 and is followed by the closing high from 7/15 of 83.04. Short-term support for DXY comes in at Tuesday’s low of 81.93 with the 5/1 closing low at 81.48 below that.