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15 Nov 2013
DXY correction lower still in progress. Will Ben / Janet get their way or will data force rates higher?
FXstreet.com (Barcelona) - The DXY has turned back to the downside after completing a counter-trend bounce early in the US session.
DXY likely has lower to go, but may bounce a bit more before resuming downside
The US Dollar Index (DXY) has obviously been pressured lower for part of the week by the dovish musings of Janet Yellen and Ben Bernanke. That general pressure is likely to continue until the economic evidence makes it impossible for Bernanke / Yellen to remain this dovish. Thursday’s data flow did nothing to dissuade the QE fans as jobless claims were a bit higher than expected and productivity and trade balance data were DXY-bearish.
Friday’s schedule of data likely to affect the DXY includes: EuroZone CPI; the EcoFin meeting for the EU; US import / export prices; US Industrial Production and Capacity Utilization; US Wholesale Inventories; and the US NY Empire state Manufacturing Index.
Technical outlook for the DXY
The DXY seems to be on its way to its first three downside targets at 80.52, 80.23 and 79.94 – all of which are meaningful Fibonacci retracements of the recent up move. Resistance comes in horizontal lines at 81.14 and 81.21 and is followed by the recent peak at 81.46.
DXY likely has lower to go, but may bounce a bit more before resuming downside
The US Dollar Index (DXY) has obviously been pressured lower for part of the week by the dovish musings of Janet Yellen and Ben Bernanke. That general pressure is likely to continue until the economic evidence makes it impossible for Bernanke / Yellen to remain this dovish. Thursday’s data flow did nothing to dissuade the QE fans as jobless claims were a bit higher than expected and productivity and trade balance data were DXY-bearish.
Friday’s schedule of data likely to affect the DXY includes: EuroZone CPI; the EcoFin meeting for the EU; US import / export prices; US Industrial Production and Capacity Utilization; US Wholesale Inventories; and the US NY Empire state Manufacturing Index.
Technical outlook for the DXY
The DXY seems to be on its way to its first three downside targets at 80.52, 80.23 and 79.94 – all of which are meaningful Fibonacci retracements of the recent up move. Resistance comes in horizontal lines at 81.14 and 81.21 and is followed by the recent peak at 81.46.