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11 Sep 2013
Bullish divergence in DXY as it held 81.68 support while risk assets rallied
FXstreet.com (Barcelona) - The risk rally over the previous several sessions came at the expense of the US Dollar Index (DXY) and Japanese Yen – but not on Tuesday – at least for the DXY.
Data flow plus US geo-politics to take the driver’s seat for the DXY Wednesday
Data points are due out from Japan, Australia, Germany, Britain and the US – most of which would seem to have enough juice to move the DXY in one way or another Wednesday. In addition, the whole world will be monitoring the words and actions of U.S. politicians – starting with President Obama Tuesday night in the U.S. and possibly ending with a vote on military action in the U.S. Congress Wednesday.
Technical outlook for the DXY
Technicians remain bullish on the DXY overall and think a fourth wave correction (in Elliott Wave terminology) may have been completed Monday at near 81.68 (adjusted lower from earlier estimates). They say to look for a move up towards 83.35 now – which may coincide with the yield on the 10-year Treasury Note hitting its upside target of 3.021%.
Data flow plus US geo-politics to take the driver’s seat for the DXY Wednesday
Data points are due out from Japan, Australia, Germany, Britain and the US – most of which would seem to have enough juice to move the DXY in one way or another Wednesday. In addition, the whole world will be monitoring the words and actions of U.S. politicians – starting with President Obama Tuesday night in the U.S. and possibly ending with a vote on military action in the U.S. Congress Wednesday.
Technical outlook for the DXY
Technicians remain bullish on the DXY overall and think a fourth wave correction (in Elliott Wave terminology) may have been completed Monday at near 81.68 (adjusted lower from earlier estimates). They say to look for a move up towards 83.35 now – which may coincide with the yield on the 10-year Treasury Note hitting its upside target of 3.021%.