10 Oct 2013
DXY posts nice gain Wednesday but faces critical resistance at 80.44
FXstreet.com (Barcelona) - Global investors expressed a little more confidence in owning US Dollars Wednesday than they had for quite a while.
DXY and US markets received a short-term reprieve Wednesday – will it last?
It has not felt safe or comfortable to be short of the US equity market for quite a while. Tuesday, it started to look like that dynamic may be changing. Wednesday, however, owning equities AND US Dollars (represented by the US Dollar Index - DXY) seemed to be the thing to do – especially when the bears in each market realized they weren’t going to succeed in breaking things below support on a closing basis.
Technical outlook for DXY
Technicians say the DXY still faces stiff Fibonacci retracement resistance at 80.44. A break and close above that level will likely cause a more substantial flurry of buying activity than we have seen in DXY since late-July / early-August. Technicians remain somewhat bearish on the DXY. They are anticipating a final move down to 79.00 at some point soon.
DXY and US markets received a short-term reprieve Wednesday – will it last?
It has not felt safe or comfortable to be short of the US equity market for quite a while. Tuesday, it started to look like that dynamic may be changing. Wednesday, however, owning equities AND US Dollars (represented by the US Dollar Index - DXY) seemed to be the thing to do – especially when the bears in each market realized they weren’t going to succeed in breaking things below support on a closing basis.
Technical outlook for DXY
Technicians say the DXY still faces stiff Fibonacci retracement resistance at 80.44. A break and close above that level will likely cause a more substantial flurry of buying activity than we have seen in DXY since late-July / early-August. Technicians remain somewhat bearish on the DXY. They are anticipating a final move down to 79.00 at some point soon.