4 Sep 2013
DXY hits likely ST upside target at 82.50 and starts consolidation phase
FXstreet.com (Barcelona) - The DXY continued its recent bullish trend early Tuesday but finally hit a Fibonacci price projection at 82.50 and started to consolidate the recent gains. At 21:00 GMT, DXY was trading at 82.34.
DXY has a steady stream of data to absorb the rest of this week
Tuesday’s data flow was net neutral for the DXY as just about everything that came out from major countries was on the bullish side of the ledger – including from the US. So, the net effect was that all of the bullish data from Switzerland, Europe and Britain and the hawkish RBA policy statement language was pretty much offset by a better-than-expected US ISM Manufacturing Index.
For the rest of this week, traders will be eyeing a heavy flow of important data points and central banks’ interest rate decisions. Here’s the schedule:
* Wednesday: Australian GDP; Services PMI readings from all over Europe; EuroZone GDP; EuroZone Retail Sales; US Trade Balance; Bank of Canada rate decision; US Fed Beige Book; Fed’s Dudley speaking
* Thursday: Bank of Japan rate decision; Fed’s Kocherlakota speaking; German Factory Orders; Bank of England rate decision; ECB Interest Rate Decision; US ADP Employment Change; US Weekly Jobless Claims; US Non-Farm Productivity & Labor Costs; US Factory Orders; US ISM Non-Manufacturing PMI
* Friday: German Industrial Production; Canadian Inflation Data; Canadian Employment Data; US Monthly Employment Report
Technical outlook for the DXY
Technicians remain bullish on the DXY overall, but acknowledge that it hit a Fibonacci target at 82.50 and is short-term overbought. That, they say, is a recipe for a pullback. The possible pullback targets based on Fibonacci retracement levels are 82.19, 81.99 and 81.82.
DXY has a steady stream of data to absorb the rest of this week
Tuesday’s data flow was net neutral for the DXY as just about everything that came out from major countries was on the bullish side of the ledger – including from the US. So, the net effect was that all of the bullish data from Switzerland, Europe and Britain and the hawkish RBA policy statement language was pretty much offset by a better-than-expected US ISM Manufacturing Index.
For the rest of this week, traders will be eyeing a heavy flow of important data points and central banks’ interest rate decisions. Here’s the schedule:
* Wednesday: Australian GDP; Services PMI readings from all over Europe; EuroZone GDP; EuroZone Retail Sales; US Trade Balance; Bank of Canada rate decision; US Fed Beige Book; Fed’s Dudley speaking
* Thursday: Bank of Japan rate decision; Fed’s Kocherlakota speaking; German Factory Orders; Bank of England rate decision; ECB Interest Rate Decision; US ADP Employment Change; US Weekly Jobless Claims; US Non-Farm Productivity & Labor Costs; US Factory Orders; US ISM Non-Manufacturing PMI
* Friday: German Industrial Production; Canadian Inflation Data; Canadian Employment Data; US Monthly Employment Report
Technical outlook for the DXY
Technicians remain bullish on the DXY overall, but acknowledge that it hit a Fibonacci target at 82.50 and is short-term overbought. That, they say, is a recipe for a pullback. The possible pullback targets based on Fibonacci retracement levels are 82.19, 81.99 and 81.82.