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27 Aug 2013
The DXY is trading bearish – even in its rally attempts; more downside ahead
FXstreet.com (Barcelona) - The DXY remains stuck in the middle as the bulls and the bears play tug-of-war. Who will gain the advantage? The trading action says the bears will in the short-term.
DXY to get push from Germany and the US Tuesday
The DXY sold off initially on the horrible Durable Goods number in the US, but quickly traded back up to recapture a good percentage of the losses over the next several hours. Unfortunately for the DXY bulls, the greenback has proceeded to fade into the evening hours in the US in more ways than one. The DXY peaked in the afternoon at 81.48 and is now at 81.33 and fading.
Traders will be eyeing German IFO Current Assessment, Business Climate and Expectations early Tuesday and will perk up once again when the S&P Case Schiller Home Price Index, Consumer Confidence numbers and Richmond Fed Manufacturing Index are all released later in the day in the US.
Technical outlook for the DXY
Technicians are still calling for a little more downside in the DXY before the projected target of 80.51 will have been effectively tested. Once that level is tested, they say a fairly substantial up move to 85 – 88 is expected. Only a close above 82.50 will have the bears exiting their downside bets. Meanwhile, if the DXY closes below 80.50, the bulls will be forced to re-evaluate their theses.
DXY to get push from Germany and the US Tuesday
The DXY sold off initially on the horrible Durable Goods number in the US, but quickly traded back up to recapture a good percentage of the losses over the next several hours. Unfortunately for the DXY bulls, the greenback has proceeded to fade into the evening hours in the US in more ways than one. The DXY peaked in the afternoon at 81.48 and is now at 81.33 and fading.
Traders will be eyeing German IFO Current Assessment, Business Climate and Expectations early Tuesday and will perk up once again when the S&P Case Schiller Home Price Index, Consumer Confidence numbers and Richmond Fed Manufacturing Index are all released later in the day in the US.
Technical outlook for the DXY
Technicians are still calling for a little more downside in the DXY before the projected target of 80.51 will have been effectively tested. Once that level is tested, they say a fairly substantial up move to 85 – 88 is expected. Only a close above 82.50 will have the bears exiting their downside bets. Meanwhile, if the DXY closes below 80.50, the bulls will be forced to re-evaluate their theses.