Back
12 Aug 2013
September taper odds – a fact reflected in DXY strength Friday til now
FXstreet.com (Barcelona) - The odds of the Fed’s proposed tapering program starting in September have jumped from the previous week’s levels. Trading in the DXY from Friday until early Monday is already reflecting this.
Odds of tapering beginning in September up to 36%
Gambling website, PaddyPower.com, has the odds of September being the month the Fed begins to taper at 36% - higher than any other month and up from 14% a week ago. This is occurring as the US Dollar index was approaching key “correction support” at the 80.51 – 80.66 range. After trading as low as 80.87, however, the DXY has already shown signs of life after the sharp recent decline – trading up on Friday and thus far Monday.
Technical outlook for the DXY
Technicians say the downside trading target for DXY is likely 80.51 – 80.66 after 81.13 support was broken last week. Once the anticipated low is established, technicians are calling for a sharp move to the upside with an ultimate target of at least 85.00 – which will likely correspond with the Fed’s tapering program. Shorter-term resistance for DXY comes in at the 7/31 closing low at 81.45 and is backed up by the 7/24 peak at 82.42.
Odds of tapering beginning in September up to 36%
Gambling website, PaddyPower.com, has the odds of September being the month the Fed begins to taper at 36% - higher than any other month and up from 14% a week ago. This is occurring as the US Dollar index was approaching key “correction support” at the 80.51 – 80.66 range. After trading as low as 80.87, however, the DXY has already shown signs of life after the sharp recent decline – trading up on Friday and thus far Monday.
Technical outlook for the DXY
Technicians say the downside trading target for DXY is likely 80.51 – 80.66 after 81.13 support was broken last week. Once the anticipated low is established, technicians are calling for a sharp move to the upside with an ultimate target of at least 85.00 – which will likely correspond with the Fed’s tapering program. Shorter-term resistance for DXY comes in at the 7/31 closing low at 81.45 and is backed up by the 7/24 peak at 82.42.