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20 Sep 2013
DXY bouncing very modestly after reaching oversold; Fed head speeches loom
FXstreet.com (Barcelona) - The “risk on” trade took a brief breather Thursday and early Friday and the oversold DXY managed to move sideways instead of straight down – at least temporarily.
DXY bulls shaking in their boots ahead of three “Fed head” speeches Friday
There are no meaningful data points due out Friday that will move the DXY one way or another. So, unless either Esther George, James Bullard or Narayana Kocherlakota has suddenly become more powerful than Ben Bernanke or Janet Yellen on the FOMC recently AND are uber-hawkish with their words in Friday’s scheduled speeches, DXY bulls likely have little to help ease their pain until next week.
Technical outlook for DXY
Technicians say the DXY is now in full-on bear mode and that rallies are to be sold. That being noted, the first possible resistance for the greenback comes in at 81 and is backed up by more overhead at the 9/17 peak of 81.35. Short-term support comes in at Wednesday’s low of 80.06. The longer-term downside target range for DXY is 77.96 - 78.90.
DXY bulls shaking in their boots ahead of three “Fed head” speeches Friday
There are no meaningful data points due out Friday that will move the DXY one way or another. So, unless either Esther George, James Bullard or Narayana Kocherlakota has suddenly become more powerful than Ben Bernanke or Janet Yellen on the FOMC recently AND are uber-hawkish with their words in Friday’s scheduled speeches, DXY bulls likely have little to help ease their pain until next week.
Technical outlook for DXY
Technicians say the DXY is now in full-on bear mode and that rallies are to be sold. That being noted, the first possible resistance for the greenback comes in at 81 and is backed up by more overhead at the 9/17 peak of 81.35. Short-term support comes in at Wednesday’s low of 80.06. The longer-term downside target range for DXY is 77.96 - 78.90.