16 Oct 2013
DXY tumbles hard during US session Tuesday as DC wrangling heated back up
FXstreet.com (Barcelona) - The US Dollar Index (DXY) was in rally mode all session – at least until the US market hours rolled around. That’s when investors decided to show politicians how they felt about their inability to work things out.
DXY at the mercy of DC developments and global data
The weakness in DXY late Tuesday was clearly a vote of discontent on the part of global investors and traders as the DXY fell faster and faster as the minutes and hours passed late Tuesday not only without a deal, but with news of more posturing by warring factions of both parties – and even within the Republican party.
All eyes will continue to be trained on Washington for any developments. However, Wednesday will bring potentially meaningful data points in the form of British employment data and EuroZone CPI and trade balance data early in the session as well as US TIC Flows, the US NAHB Housing Market Index and the US Fed Beige Book Survey later in the session.
Technical outlook for DXY
Technicians still say there is one more hurdle to jump at 80.51 for the US Dollar Index (DXY) bulls to officially be in the clear. Above that level, the next resistance would be 80.75. If resistance holds at 80.51 or lower – as it seems it might – we could still see a drop all the way down to the wave “C” target at 79.00.
DXY at the mercy of DC developments and global data
The weakness in DXY late Tuesday was clearly a vote of discontent on the part of global investors and traders as the DXY fell faster and faster as the minutes and hours passed late Tuesday not only without a deal, but with news of more posturing by warring factions of both parties – and even within the Republican party.
All eyes will continue to be trained on Washington for any developments. However, Wednesday will bring potentially meaningful data points in the form of British employment data and EuroZone CPI and trade balance data early in the session as well as US TIC Flows, the US NAHB Housing Market Index and the US Fed Beige Book Survey later in the session.
Technical outlook for DXY
Technicians still say there is one more hurdle to jump at 80.51 for the US Dollar Index (DXY) bulls to officially be in the clear. Above that level, the next resistance would be 80.75. If resistance holds at 80.51 or lower – as it seems it might – we could still see a drop all the way down to the wave “C” target at 79.00.