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26 Aug 2013
The DXY hit a big wall Friday at 81.66. Can it regain its previous upside momentum?
FXstreet.com (Barcelona) - Any upside momentum that was being built in the DXY was seemingly extinguished by the shockingly poor housing data released Friday morning in the US.
DXY to get push from the US and Europe early this week and Japan later on
Those interested in the DXY will be watching to see if this week’s data flow will allow it to regain the bullishness it was displaying prior to Friday’s far weaker-than-expected housing numbers in the US. Early in the week, the US will have the stage while Europe and Japan (the two key drivers for the DXY – outside of the US itself) will join the fray later in the week.
Technical outlook for the DXY
Technicians maintain that the DXY may have a little downside left before the projected target of 80.51 will have been effectively tested. Once that level is tested, they say a fairly substantial up move to 85 – 88 is expected. Only a close above 82.50 will have the bears exiting their downside bets. Meanwhile, if the DXY closes below 80.50, the bulls will be forced to re-evaluate their theses.
DXY to get push from the US and Europe early this week and Japan later on
Those interested in the DXY will be watching to see if this week’s data flow will allow it to regain the bullishness it was displaying prior to Friday’s far weaker-than-expected housing numbers in the US. Early in the week, the US will have the stage while Europe and Japan (the two key drivers for the DXY – outside of the US itself) will join the fray later in the week.
Technical outlook for the DXY
Technicians maintain that the DXY may have a little downside left before the projected target of 80.51 will have been effectively tested. Once that level is tested, they say a fairly substantial up move to 85 – 88 is expected. Only a close above 82.50 will have the bears exiting their downside bets. Meanwhile, if the DXY closes below 80.50, the bulls will be forced to re-evaluate their theses.