Back
8 Oct 2013
DXY likely to remain oversold and technically broken until healing words emanate from D.C.
FXstreet.com (Barcelona) - Technically oversold conditions have thus far failed to produce more than a single day rally in more than a week for the DXY.
DXY defying technical odds by failing to even relieve some of the oversold condition
Is the DXY oversold? Yes. Crowded short? Of course. Primed to rip higher on any hint of a DC resolution? Indeed. All that does not seem to matter, though, as nobody seems confident enough to take the long-greenback side of any currency pair.
Every day that passes ratchets up the angst level on the part of global investors – let’s see if Monday’s pattern of “risk-off” during Asian and European sessions and then “risk-on” during the later part of the daily session (during US hours). Or,will there be a failure of the dip-buyers to make an appearance one of these days?
Technical outlook for DXY
Technicians say the DXY bounced off of 80.13 resistance over the last few sessions and now appears set to make another move lower. They are anticipating a final move down to 79.00 at some point soon.
DXY defying technical odds by failing to even relieve some of the oversold condition
Is the DXY oversold? Yes. Crowded short? Of course. Primed to rip higher on any hint of a DC resolution? Indeed. All that does not seem to matter, though, as nobody seems confident enough to take the long-greenback side of any currency pair.
Every day that passes ratchets up the angst level on the part of global investors – let’s see if Monday’s pattern of “risk-off” during Asian and European sessions and then “risk-on” during the later part of the daily session (during US hours). Or,will there be a failure of the dip-buyers to make an appearance one of these days?
Technical outlook for DXY
Technicians say the DXY bounced off of 80.13 resistance over the last few sessions and now appears set to make another move lower. They are anticipating a final move down to 79.00 at some point soon.