8 Nov 2013
DXY rips through 80.75, exceeds the next projected target at 81.08 and then pulls back hard
FXstreet.com (Barcelona) - The US Dollar Index (DXY) was driven higher by the ECB’s decision and comments and then pulled back down by the flow of US data and technical factors during the US session today.
DXY set to react now to the monthly Employment Report out of the US Friday
After the wild swings that characterized Thursday’s session, almost anything would appear to be anon-event to traders. Friday, however, the all-important US non-farm payrolls data will be released which is sure to either boost the DXY back up through today’s highs or to further the short-term correction lower that appears to have started today.
Technical outlook for the DXY
The DXY took out the ceiling at 80.75 and even took out the next projected target at 81.08 before topping intraday and tumbling back down to close just above the 80.75 level. If the late day action was the beginning of a correction lower, the first three downside targets are 80.52, 80.23 and 79.94 –n all of which are meaningful Fibonacci retracements of the recent up move. Resistance now is set at the 11/3 peak at 80.93 and is backed up by 81.46.
DXY set to react now to the monthly Employment Report out of the US Friday
After the wild swings that characterized Thursday’s session, almost anything would appear to be anon-event to traders. Friday, however, the all-important US non-farm payrolls data will be released which is sure to either boost the DXY back up through today’s highs or to further the short-term correction lower that appears to have started today.
Technical outlook for the DXY
The DXY took out the ceiling at 80.75 and even took out the next projected target at 81.08 before topping intraday and tumbling back down to close just above the 80.75 level. If the late day action was the beginning of a correction lower, the first three downside targets are 80.52, 80.23 and 79.94 –n all of which are meaningful Fibonacci retracements of the recent up move. Resistance now is set at the 11/3 peak at 80.93 and is backed up by 81.46.