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9 Sep 2013
DXY bracketed by 82.22 support and projected wave 5 upside at 83.35
FXstreet.com (Barcelona) - The US Dollar Index (DXY) could not sell-off convincingly and could not work off its overbought condition despite the poor employment report Friday – which tells analysts that it’s likely going higher.
A bad US jobs report couldn’t tank the DXY. Anything different expected this week?
Early Friday in the US, it looked like we were seeing the beginnings of a decent correction lower in the DXY. However, by the end of the day the greenback managed to work its way back above the session’s midpoint – which technicians viewed as bullish behavior.
This week, there will be a fairly light economic data flow in the US – with only the weekly jobless claims, retail sales, consumer sentiment and some longer-dated Treasury actions on the calendar late in the week. There will be some data of interest globally – namely British inflation and jobs data, Aussie employment data and the ECB’s Monthly Report.
Technical outlook for the DXY
Technicians remain bullish on the DXY overall and think a fourth wave consolidation (in Elliott Wave terminology) may have been completed on Friday with 82.22 being the downside support. 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%.
A bad US jobs report couldn’t tank the DXY. Anything different expected this week?
Early Friday in the US, it looked like we were seeing the beginnings of a decent correction lower in the DXY. However, by the end of the day the greenback managed to work its way back above the session’s midpoint – which technicians viewed as bullish behavior.
This week, there will be a fairly light economic data flow in the US – with only the weekly jobless claims, retail sales, consumer sentiment and some longer-dated Treasury actions on the calendar late in the week. There will be some data of interest globally – namely British inflation and jobs data, Aussie employment data and the ECB’s Monthly Report.
Technical outlook for the DXY
Technicians remain bullish on the DXY overall and think a fourth wave consolidation (in Elliott Wave terminology) may have been completed on Friday with 82.22 being the downside support. 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%.