29 Jul 2013
DXY oversold but with room until max downside “correction target” of 80.71
FXstreet.com (Barcelona) - The US Dollar Index (DXY) reacted bearishly to the data, news and rumor flow last week. This week will reveal the accuracy of those rumors plus plenty of other data from around the globe.
Huge week of data and announcements promises to push the DXY around all week
The DXY spent the majority of last week pressing lower through various short-term support levels on bullish euro and Yen news flow and rumors that the Fed announce that they would maintain the current $85 billion per month bond-buying program at the FOMC meeting this week. In addition to the Fed meeting, traders will be digesting a very healthy economic calendar this week – including the US’s monthly employment report on Friday.
Technical outlook for the DXY
Technicians have been mixed in their outlook for US interest rates and the US Dollar. The group that seems to have been on the mark recently is the short-term bearish DXY / interest rates crowd – which was not so popular just a few weeks ago. That group has the DXY bottoming out for this move anywhere from 81.46 all the way down to 80.71 on the DXY. Short-term support for DXY comes in at 81.46 and is followed up by 81.13 and 80.71 (all three of which are Fibonacci price projections). Resistance for DXY comes in at 81.94, the 7/23 close, and is followed by the 7/24 peak at 82.24.
Huge week of data and announcements promises to push the DXY around all week
The DXY spent the majority of last week pressing lower through various short-term support levels on bullish euro and Yen news flow and rumors that the Fed announce that they would maintain the current $85 billion per month bond-buying program at the FOMC meeting this week. In addition to the Fed meeting, traders will be digesting a very healthy economic calendar this week – including the US’s monthly employment report on Friday.
Technical outlook for the DXY
Technicians have been mixed in their outlook for US interest rates and the US Dollar. The group that seems to have been on the mark recently is the short-term bearish DXY / interest rates crowd – which was not so popular just a few weeks ago. That group has the DXY bottoming out for this move anywhere from 81.46 all the way down to 80.71 on the DXY. Short-term support for DXY comes in at 81.46 and is followed up by 81.13 and 80.71 (all three of which are Fibonacci price projections). Resistance for DXY comes in at 81.94, the 7/23 close, and is followed by the 7/24 peak at 82.24.