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22 Oct 2013
DXY loses footing early in US on bad data but finishes off lows; short-term target 79.39
FXstreet.com (Barcelona) - The DXY still appears to be destined for a test of the 79.39 support level prior to another tradable bounce. However, market players are understandably treading lightly ahead of Tuesday’s US jobs report.
DXY in a holding pattern until Tuesday’s US NFP release
The US Dollar was making a decent attempt at a bounce to start the week but the weak home sales data out of the US changed that in a hurry. No additional technical damage was done to the DXY, however and it managed to finish off the lows.
All eyes will be on the US Non-Farm Payrolls number which is due out at 12:30 GMT Tuesday.
Technical outlook for DXY
Technicians say the DXY appears to be in wave “v” lower of a larger sub-wave lower. The target for wave “v” appears to be around 79.39. At that point, under normal circumstances, we would likely see a bounce in DXY – perhaps as much as a full retracement of the decline that began on 10/16 at 80.75 (intraday high). Initial resistance, though, comes in at the 10/17 high at 79.76 and Monday’s high of 79.82.
DXY in a holding pattern until Tuesday’s US NFP release
The US Dollar was making a decent attempt at a bounce to start the week but the weak home sales data out of the US changed that in a hurry. No additional technical damage was done to the DXY, however and it managed to finish off the lows.
All eyes will be on the US Non-Farm Payrolls number which is due out at 12:30 GMT Tuesday.
Technical outlook for DXY
Technicians say the DXY appears to be in wave “v” lower of a larger sub-wave lower. The target for wave “v” appears to be around 79.39. At that point, under normal circumstances, we would likely see a bounce in DXY – perhaps as much as a full retracement of the decline that began on 10/16 at 80.75 (intraday high). Initial resistance, though, comes in at the 10/17 high at 79.76 and Monday’s high of 79.82.