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21 Jun 2013
DXY advances capped below 82.50
FXstreet.com (Barcelona) - After trading as high as 82.30 earlier in the day, the DXY was unable to take out resistance near the 82.50 level but still managed to finish the day up 41 pips at 81.96.
US Dollar likely to remain bid as 'risk off' mentality prevails
David Song, Currency Analyst at DailyFX shared some thoughts on some reasons for the recent appreciation of the greenback. "The U.S. dollar continued to appreciate against its major counterparts as the Fed Chairman Ben Bernanke showed a greater willingness to taper the asset-purchase program, and the flight to safety may gather pace over the remainder of the week as there appears to be a banking-crisis emerging in China.”
In conclusion, Song noted, “In turn, the near-term rally in the USD looks poised to gather pace over the remainder of the week, and negative headlines coming out of the world economy should continue to prop up the reserve currency as market participants scale back their appetite for risk."
Bulls continue to repair previous technical damage
The US Dollar bulls continued to work on repairing previous technical damage on the DXY daily chart. Short term moving averages are now in neutral set up, with price consolidating between the 9 and 20dma’s. The RSI (14) remains in the bearish zone between 20 and 60 on the daily chart, but the 1 hour charts suggest momentum buyers are currently in control which will be a development to monitor as we round out the week. Initial resistance remains at 82.50 (previous support, now resistance), while first support sits at 81.80.
US Dollar likely to remain bid as 'risk off' mentality prevails
David Song, Currency Analyst at DailyFX shared some thoughts on some reasons for the recent appreciation of the greenback. "The U.S. dollar continued to appreciate against its major counterparts as the Fed Chairman Ben Bernanke showed a greater willingness to taper the asset-purchase program, and the flight to safety may gather pace over the remainder of the week as there appears to be a banking-crisis emerging in China.”
In conclusion, Song noted, “In turn, the near-term rally in the USD looks poised to gather pace over the remainder of the week, and negative headlines coming out of the world economy should continue to prop up the reserve currency as market participants scale back their appetite for risk."
Bulls continue to repair previous technical damage
The US Dollar bulls continued to work on repairing previous technical damage on the DXY daily chart. Short term moving averages are now in neutral set up, with price consolidating between the 9 and 20dma’s. The RSI (14) remains in the bearish zone between 20 and 60 on the daily chart, but the 1 hour charts suggest momentum buyers are currently in control which will be a development to monitor as we round out the week. Initial resistance remains at 82.50 (previous support, now resistance), while first support sits at 81.80.