26 Jul 2013
Flashes: DXY still faces medium term upside risks - JPMorgan
FXstreet.com (Barcelona) - The DXY on the daily continues to communicate that the pull back from the June high is short term corrective in nature against the medium term upside risks, John Normand and Niall O'Connor from JP Morgan Securities note.
Key Quotes
"Key support levels have thus far contained the weakness with a key focus on the 82.10/81.50 area for the DXY. Note the June lows are viewed as short term floors. Importantly, violations would confirm a bearish shift for the broad USD picture. Until then, the upside risks are intact."
"For the DXY, the 84.50/84.95 zone which includes the May peak and 76.4% retracement from the 2010 cycle high will continue to act as the key resistance zone. This coincides with the 1.2745 area for EUR/USD, the 1.48 zone for GBP/USD, the .91/.90 levels for AUD/USD and the 1.0660 area for USD/CAD."
"Upside breaks should confirm another leg to the medium term USD advance. In turn, the DXY should seek targets in the 86.30/35 zone (50% retrace from 2009), while putting the 2010 high (88.71) back on the radar."
Key Quotes
"Key support levels have thus far contained the weakness with a key focus on the 82.10/81.50 area for the DXY. Note the June lows are viewed as short term floors. Importantly, violations would confirm a bearish shift for the broad USD picture. Until then, the upside risks are intact."
"For the DXY, the 84.50/84.95 zone which includes the May peak and 76.4% retracement from the 2010 cycle high will continue to act as the key resistance zone. This coincides with the 1.2745 area for EUR/USD, the 1.48 zone for GBP/USD, the .91/.90 levels for AUD/USD and the 1.0660 area for USD/CAD."
"Upside breaks should confirm another leg to the medium term USD advance. In turn, the DXY should seek targets in the 86.30/35 zone (50% retrace from 2009), while putting the 2010 high (88.71) back on the radar."