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2 Aug 2013
DXY rips after better data and stock breakout – still below resistance
FXstreet.com (Barcelona) - The US Dollar Index (DXY) took the news from the US economy as extremely bullish – at least for a day. Traders now focused on US employment report due out Friday.
DXY entered Thursday session oversold – not anymore
Analysts had been calling for an oversold bounce in the DXY to occur anyway, but Thursday’s rally was probably more than they bargained for. The combination of better-than-expected economic data in the US, an ECB that is content to remain dovish and a stock market rally gave the greenback all the fuel it needed to rally hard Thursday. Perhaps after Friday’s data and trading reaction, we will know whether Thursday was just a counter-trend bounce or the start of something larger on the upside.
Technical outlook for the DXY
Technicians had identified 81.63 as a potential level off of which the DXY could bounce. Unless something drastic changes in the short-term, that may be “the” support level for the DXY. Below 81.63, though, 81.13 and 80.71 remain possible support levels as well. Resistance for DXY comes in at the 7/24 peak at 82.42 and is backed up by the 7/18 close at 82.82.
DXY entered Thursday session oversold – not anymore
Analysts had been calling for an oversold bounce in the DXY to occur anyway, but Thursday’s rally was probably more than they bargained for. The combination of better-than-expected economic data in the US, an ECB that is content to remain dovish and a stock market rally gave the greenback all the fuel it needed to rally hard Thursday. Perhaps after Friday’s data and trading reaction, we will know whether Thursday was just a counter-trend bounce or the start of something larger on the upside.
Technical outlook for the DXY
Technicians had identified 81.63 as a potential level off of which the DXY could bounce. Unless something drastic changes in the short-term, that may be “the” support level for the DXY. Below 81.63, though, 81.13 and 80.71 remain possible support levels as well. Resistance for DXY comes in at the 7/24 peak at 82.42 and is backed up by the 7/18 close at 82.82.