13 Dec 2013
DXY posts mild bullish reversal Thursday – a blip or something more substantial?
FXstreet.com (Barcelona) - The DXY had multiple tailwinds Thursday – including correcting euro and Pound currencies as well as more talk of Fed QE tapering.
Light data day Friday leaves DXY at the will of tapering talk
With modest data flow Friday, the continuous flow of quotes and leaks emanating from Washington, D.C. regarding the US Budget discussions will likely be the number one driver of trading in the DXY currency pairs.
The few data points likely to push the DXY directionally include:
• Japanese Industrial Production
• Japanese Capacity Utilization
• German Wholesale Prices
• EuroZone Unemployment data
• and, the US Producer Price Index
Technical outlook for the DXY
Technicians say the DXY may have set a short-term low at 79.75 support Thursday. Below that level, there is additional support at 79.63 and at the ultimate “line in the sand” at 79. Resistance for DXY comes in at the previous support of 80.53 and then at round number resistance at 81.
Light data day Friday leaves DXY at the will of tapering talk
With modest data flow Friday, the continuous flow of quotes and leaks emanating from Washington, D.C. regarding the US Budget discussions will likely be the number one driver of trading in the DXY currency pairs.
The few data points likely to push the DXY directionally include:
• Japanese Industrial Production
• Japanese Capacity Utilization
• German Wholesale Prices
• EuroZone Unemployment data
• and, the US Producer Price Index
Technical outlook for the DXY
Technicians say the DXY may have set a short-term low at 79.75 support Thursday. Below that level, there is additional support at 79.63 and at the ultimate “line in the sand” at 79. Resistance for DXY comes in at the previous support of 80.53 and then at round number resistance at 81.