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20 Dec 2013
DXY trading above 80.53 resistance but needs to close above it to give bulls’ victory
FXstreet.com (Barcelona) - The DXY failed to put the nails in the coffin of the bears Wednesday when it failed to close the day out above 80.53. It is back above that level now – but will it be able to hold up here as the weekend approaches?
Tapering day done, digestion day done – now true direction day is needed
The initial explosion higher after the Fed announced its tapering program was offset Thursday by sluggish US data like higher-than-expected weekly jobless claims (and a rising 4-week moving average). The “token” tapering program may have appeased some of the hawks on the FOMC, but how quickly will they open the spigot to full blast if the economy starts to get dicey again?
In terms of the DXY Friday, it will likely be pushed around by the following global data:
• Bank of Japan Interest Rate Decision and accompanying commentary
• German Consumer Confidence Survey
• German PPI
• Bank of England Quarterly Bulletin
• British Consumer Confidence
• British GDP
• British Total Business Investment
• Canadian CPI
• Canadian Retail Sales
• US GDP
• US Personal Consumption Expenditure
• US Nomination Vote for Yellen
• EuroZone Consumer Confidence
Technical outlook for the DXY
Technicians say the DXY may have set a short-term low at 79.75 support last 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 ST “correction resistance” at 80.53 and is followed up by a round number level at 81 and is backed up further by the horizontal line at 81.50. The ultimate target for DXY for this move higher should – according to Elliott Wave Technicians – be 86.92 in the long-term (so get ready for whatever ramifications that may bring to the other asset classes).
Tapering day done, digestion day done – now true direction day is needed
The initial explosion higher after the Fed announced its tapering program was offset Thursday by sluggish US data like higher-than-expected weekly jobless claims (and a rising 4-week moving average). The “token” tapering program may have appeased some of the hawks on the FOMC, but how quickly will they open the spigot to full blast if the economy starts to get dicey again?
In terms of the DXY Friday, it will likely be pushed around by the following global data:
• Bank of Japan Interest Rate Decision and accompanying commentary
• German Consumer Confidence Survey
• German PPI
• Bank of England Quarterly Bulletin
• British Consumer Confidence
• British GDP
• British Total Business Investment
• Canadian CPI
• Canadian Retail Sales
• US GDP
• US Personal Consumption Expenditure
• US Nomination Vote for Yellen
• EuroZone Consumer Confidence
Technical outlook for the DXY
Technicians say the DXY may have set a short-term low at 79.75 support last 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 ST “correction resistance” at 80.53 and is followed up by a round number level at 81 and is backed up further by the horizontal line at 81.50. The ultimate target for DXY for this move higher should – according to Elliott Wave Technicians – be 86.92 in the long-term (so get ready for whatever ramifications that may bring to the other asset classes).