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12 Sep 2013
DXY had more correcting to do Thursday, but support at 81.35 now nearby
FXstreet.com (Barcelona) - With the “risk-on” trade in full effect for the last few sessions, the DXY fell a bit further than analysts anticipated. Now, however, it appears that solid support may come in at 81.35.
Limited US data and other factors Wednesday allowed the “risk-on” trade to continue
There was no data of consequence out of the US, there were rumors / hopes that things might get worked out in Syria and data from around the world was good enough to allow the persistent “risk on” trade to continue for at least one more day Wednesday.
Thursday has already brought traders one negative surprise in the form of a bearish Aussie jobs report. With the ECB’s Monthly Report, British inflation hearings and Mario Draghi speaking later in the day – not to mention jobless claims data in the US – there will be plenty of potential catalysts for the DXY later today.
Technical outlook for the DXY
Technicians remain bullish on the DXY overall and think a fourth wave correction (in Elliott Wave terminology) may be nearing completion at 81.35 (adjusted lower from earlier estimates). They say to look for a move up towards 83.35 once the downside correction is done.
Limited US data and other factors Wednesday allowed the “risk-on” trade to continue
There was no data of consequence out of the US, there were rumors / hopes that things might get worked out in Syria and data from around the world was good enough to allow the persistent “risk on” trade to continue for at least one more day Wednesday.
Thursday has already brought traders one negative surprise in the form of a bearish Aussie jobs report. With the ECB’s Monthly Report, British inflation hearings and Mario Draghi speaking later in the day – not to mention jobless claims data in the US – there will be plenty of potential catalysts for the DXY later today.
Technical outlook for the DXY
Technicians remain bullish on the DXY overall and think a fourth wave correction (in Elliott Wave terminology) may be nearing completion at 81.35 (adjusted lower from earlier estimates). They say to look for a move up towards 83.35 once the downside correction is done.