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2 Oct 2013
DXY bounces off 79.86 support but now faces upside correction resistance at 80.25
FXstreet.com (Barcelona) - The DXY counter-intuitively rallied Tuesday despite the news flow out of Washington. Traders instead focused on better ISM Manufacturing Data – betting the government shutdown will be a short-term phenomenon.
Traders blowing off DC follies and trying to focus on perceived economic reality
The US Dollar Index rallied off of technical support at 79.86 and spent the majority of the US session grinding higher in what appears to have been a correction to the upside. The rally was fueled later in the US session by better-than-expected ISM Manufacturing data out of the US. The DXY hit a ceiling, however, at 80.23 – just below key technical resistance at 80.25.
Technical outlook for DXY
Technicians say the DXY has projected resistance at 80.23 – 80.25. Above that range, the next test will be 80.33 – 80.38. Support is 79.86 – the low from today an Fibonacci support. Below that comes 79.55 – another Fibonacci projection.
Traders blowing off DC follies and trying to focus on perceived economic reality
The US Dollar Index rallied off of technical support at 79.86 and spent the majority of the US session grinding higher in what appears to have been a correction to the upside. The rally was fueled later in the US session by better-than-expected ISM Manufacturing data out of the US. The DXY hit a ceiling, however, at 80.23 – just below key technical resistance at 80.25.
Technical outlook for DXY
Technicians say the DXY has projected resistance at 80.23 – 80.25. Above that range, the next test will be 80.33 – 80.38. Support is 79.86 – the low from today an Fibonacci support. Below that comes 79.55 – another Fibonacci projection.