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10 Sep 2013
DXY may have finished its post-NFP correction late Monday; key floor is 81.68
FXstreet.com (Barcelona) - The US Dollar Index (DXY) – which has been hammered ever since the release of the weak non-farm payrolls number Friday – may have just completed an “abc” correction at near 81.68. Upside from here?
No US data Monday or Tuesday have meant a continuation of Friday’s weakness
With no meaningful US data points being released on Monday, the existing trend lower was going to remain in place until either technical support came into play or until some DXY-bullish news came out. Well, no such news was released, so the selling in DXY continued Sunday night and Monday morning and didn’t stop until technical support at around 81.68 was tested.
Technical outlook for the DXY
Tim Thielen, CMT, of Sea Change Capital, remains bullish of 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%.
No US data Monday or Tuesday have meant a continuation of Friday’s weakness
With no meaningful US data points being released on Monday, the existing trend lower was going to remain in place until either technical support came into play or until some DXY-bullish news came out. Well, no such news was released, so the selling in DXY continued Sunday night and Monday morning and didn’t stop until technical support at around 81.68 was tested.
Technical outlook for the DXY
Tim Thielen, CMT, of Sea Change Capital, remains bullish of 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%.