25 Sep 2013
The DXY drifts higher as part of the global “safety trade”; resistance 80.71
FXstreet.com (Barcelona) - Global investors remained on edge - seeking refuge in the DXY - in reaction to sluggish German and US data points and ahead of some type of crescendo in the US budget and debt ceiling battles.
German and US data along with D.C. antics pushed traders into safety Tuesday
German Business Climate, Current Assessment and Expectations disappointed traders and analysts during the European session and US Consumer Sentiment came in light of expectations during the US session. The DXY saw inflows as a result as global players put the old –fashioned “safety trade” on where Treasuries, the greenback, the Yen and the German bund saw buying while the euro, the Aussie Dollar, equities and risk commodities saw selling activity.
Wednesday, outside of any political developments, the trading in DXY will be driven by US Durable goods and new home sales data.
Technical outlook for DXY
Technicians like Tim Thielen, CMT of Sea Change Capital and author of the Sea Change Report, say the DXY remains technically broken on a short-term basis despite the most recent rally. Thielen sees the DXY reaching as high as 80.71 before reerting back to its recent bearish ways. His downside target for the next move lower is at least 79.93 and possibly 79.62.
German and US data along with D.C. antics pushed traders into safety Tuesday
German Business Climate, Current Assessment and Expectations disappointed traders and analysts during the European session and US Consumer Sentiment came in light of expectations during the US session. The DXY saw inflows as a result as global players put the old –fashioned “safety trade” on where Treasuries, the greenback, the Yen and the German bund saw buying while the euro, the Aussie Dollar, equities and risk commodities saw selling activity.
Wednesday, outside of any political developments, the trading in DXY will be driven by US Durable goods and new home sales data.
Technical outlook for DXY
Technicians like Tim Thielen, CMT of Sea Change Capital and author of the Sea Change Report, say the DXY remains technically broken on a short-term basis despite the most recent rally. Thielen sees the DXY reaching as high as 80.71 before reerting back to its recent bearish ways. His downside target for the next move lower is at least 79.93 and possibly 79.62.