DXY downside action persists despite December / January tapering chatter; 79.85 next stop

FXstreet.com (Barcelona) - The DXY continues to reflect a combination of euro strength, the “risk-on” attitude by investors and an apparent belief by global traders and analysts that Janet Yellen will keep her foot planted on the gas pedal as long as her colleagues can possibly stand it.

Plenty of global news and data to influence the DXY Tuesday

Most of the influences on the DXY will come from locales outside the US Tuesday – including:
• Japanese Tertiary Index
• EcoFin Meeting headlines
• Aussie Home Loan Data
• National Australia Bank’s Business Confidence / Conditions
• Japanese Consumer Confidence
• Chinese Industrial Production, Retail Sales and Urban Investment
• Japanese Machine Tool Orders
• British Trade Balance data
• British Industrial and Manufacturing Production data
• Italian GDP
• British GDP estimate
• And, a speech by Mario Draghi

Technical outlook for the DXY

At 80.16 and falling, technicians say the DXY appears to be on track for at least a test of at least 79.85 and possibly down to 79.63. The DXY bulls can still make a stand down there and rocket the greenback higher, but they certainly would loose some more of their bravado should 79.63 be broken. Resistance for DXY comes in at the previous support of 80.53.