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31 Dec 2013
DXY finishes sharply lower Monday after weak housing data – 79.75 support must hold!
FXstreet.com (Barcelona) - The DXY closed lower again Monday after showing some bullish signs late last week. Now, the index is dangerously close to critical support at 79.75.
DXY not following through on rally from late last week – not playing by tapering playbook
The US Dollar Index has still not broken out to the upside despite the Fed’s tapering announcement two weeks ago. The longer this sluggish action goes on, the more emboldened the bears will feel. Technicians are starting to notice possible trouble for the DXY in the chart of the EUR/USD. Only a little more upside is needed for a major breakout to occur on that chart – which would weigh heavily on the DXY.
Tuesday, DXY watchers will be interested to see how the index reacts to the Chicago Purchasing Managers Index and Consumer Credit which are both due out during the US session.
Technical outlook for the DXY
The DXY did manage to hold short-term support at 79.75 on Friday, but it is back down there again. Too many tests usually leads to a break – technicians say. On the other hand, if the DXY can somehow manage to gather itself and break above the 80.72 level, the bulls will be back in charge of the situation.
DXY not following through on rally from late last week – not playing by tapering playbook
The US Dollar Index has still not broken out to the upside despite the Fed’s tapering announcement two weeks ago. The longer this sluggish action goes on, the more emboldened the bears will feel. Technicians are starting to notice possible trouble for the DXY in the chart of the EUR/USD. Only a little more upside is needed for a major breakout to occur on that chart – which would weigh heavily on the DXY.
Tuesday, DXY watchers will be interested to see how the index reacts to the Chicago Purchasing Managers Index and Consumer Credit which are both due out during the US session.
Technical outlook for the DXY
The DXY did manage to hold short-term support at 79.75 on Friday, but it is back down there again. Too many tests usually leads to a break – technicians say. On the other hand, if the DXY can somehow manage to gather itself and break above the 80.72 level, the bulls will be back in charge of the situation.