25 Sep 2013
US Dollar Index drops to lows around 80.30
FXstreet.com (Edinburgh) -The selling pressure is now accelerating around the greenback, retracing the recent recovery to the area of 80.35/30, in terms of the US Dollar index.
DXY offered across the board
After bottoming out in the vicinity of the key support at the 80.00 handle post-FOMC gathering, the USD attempted a corrective upside although the pseudo-rally faltered in the mid 80.00s. As the US fiscal debate looms, Jane Foley, Chief Strategist at Rabobank, commented, “Any shutdown of the government this autumn would intensify this pressure on economic activity and could provide a fresh reason for the Fed to delay any tapering of QE. This combination is clearly USD negative and should therefore be sufficient to offset an increase in safe haven demand for the currency”.
DXY levels to watch
The index is now losing 0.29% at 80.33 and a break below 80.06 (low Sep.18) would open the door to 79.49 (low Feb.6) and then 78.93 (low Feb.1). On the upside, the next resistance lines up at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).
DXY offered across the board
After bottoming out in the vicinity of the key support at the 80.00 handle post-FOMC gathering, the USD attempted a corrective upside although the pseudo-rally faltered in the mid 80.00s. As the US fiscal debate looms, Jane Foley, Chief Strategist at Rabobank, commented, “Any shutdown of the government this autumn would intensify this pressure on economic activity and could provide a fresh reason for the Fed to delay any tapering of QE. This combination is clearly USD negative and should therefore be sufficient to offset an increase in safe haven demand for the currency”.
DXY levels to watch
The index is now losing 0.29% at 80.33 and a break below 80.06 (low Sep.18) would open the door to 79.49 (low Feb.6) and then 78.93 (low Feb.1). On the upside, the next resistance lines up at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).