Back
4 Oct 2013
DXY bludgeoned for fourth consecutive day – tests support at 79.62
FXstreet.com (Barcelona) - The DXY fell once again Thursday – reaching oversold levels just as it tested projected support at 79.62. The flow of funds into Treasuries sent yields lower which, in turn, weighed down the greenback.
DXY may pause here before making final stab lower
DXY weakness has recently resulted from a combination of investors running from the greenback and running into the Yen, the euro, the Pound and the Franc. The price action in stocks globally reflects this same sentiment – the iShares MSCI Emerging Markets ETF has basically treaded water over the last several trading sessions while US stocks have sold off.
Friday, the DXY will, in addition to being pushed around by Washington politics, be influenced by the Bank of Japan’s interest rate decision, European and German producer price indices and Canadian PMI data.
Technical outlook for DXY
Technicians say the DXY tested and held support at 79.62. Below that support level comes 79.55 – another Fibonacci projection. DXY has resistance at the 9/18 close of 80.24. Above that, the next test will be 80.33 – 80.38.
DXY may pause here before making final stab lower
DXY weakness has recently resulted from a combination of investors running from the greenback and running into the Yen, the euro, the Pound and the Franc. The price action in stocks globally reflects this same sentiment – the iShares MSCI Emerging Markets ETF has basically treaded water over the last several trading sessions while US stocks have sold off.
Friday, the DXY will, in addition to being pushed around by Washington politics, be influenced by the Bank of Japan’s interest rate decision, European and German producer price indices and Canadian PMI data.
Technical outlook for DXY
Technicians say the DXY tested and held support at 79.62. Below that support level comes 79.55 – another Fibonacci projection. DXY has resistance at the 9/18 close of 80.24. Above that, the next test will be 80.33 – 80.38.