11 Oct 2013
DXY rallies past resistance at 80.44 – DXY not a “safety” asset right now
FXstreet.com (Barcelona) - Global investors let out a collective sigh of relief when word of a possible / likely (temporary) solution to the debt ceiling issue. The US equity markets and the DXY rallied as the doomsday trade was taken off the table.
DXY and US markets rallied as shorts were forced to abandon their positions
The hardliners (economic & risk market bears) out there may still be gnashing their teeth, but apparently word of even a temporary compromise between Democrats and Republicans in D.C. was enough to force a covering of the end-of-the-western-world trade (where US stocks and the DXY were shorted and all safety money flowed into the Yen and a few other options).
Technical outlook for DXY
Technicians say there may be one more little hurdle to jump at 80.51 for the DXY bulls to officially be in the clear. Above that level, the next resistance would be 80.75. Support for DXY comes in at 79.84 and 79.63.
DXY and US markets rallied as shorts were forced to abandon their positions
The hardliners (economic & risk market bears) out there may still be gnashing their teeth, but apparently word of even a temporary compromise between Democrats and Republicans in D.C. was enough to force a covering of the end-of-the-western-world trade (where US stocks and the DXY were shorted and all safety money flowed into the Yen and a few other options).
Technical outlook for DXY
Technicians say there may be one more little hurdle to jump at 80.51 for the DXY bulls to officially be in the clear. Above that level, the next resistance would be 80.75. Support for DXY comes in at 79.84 and 79.63.