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23 Sep 2013
US Dollar Index sidelined around 80.40
FXstreet.com (Edinburgh) -The US Dollar index, which tracks the greenback against its major rivals, is posting meager losses on Monday, hovering over 80.40/45.
DXY rebounds from 80.00
After the steep pullback in the wake of the FOMC meeting last Wednesday, the greenback managed to leave the area around the key support at 80.00 and reclaim the mid 80.00s, as risk aversion advanced amongst traders. Mansoor Mohi-uddin and Gareth Berry, FX Strategists at UBS, assessed, “Once the central bank signals it will start cutting its bond purchases at the start of the new year, we expect the longer term uptrend for the greenback to resume. But for now we see position unwinding, uncertainty about the Fed's intentions and next month's US fiscal risks keeping the dollar at current levels close to its lows for the year against the euro, pound and Swiss franc”.
DXY levels to consider
The index is now losing 0.02% at 80.42 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 initial barrier aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).
DXY rebounds from 80.00
After the steep pullback in the wake of the FOMC meeting last Wednesday, the greenback managed to leave the area around the key support at 80.00 and reclaim the mid 80.00s, as risk aversion advanced amongst traders. Mansoor Mohi-uddin and Gareth Berry, FX Strategists at UBS, assessed, “Once the central bank signals it will start cutting its bond purchases at the start of the new year, we expect the longer term uptrend for the greenback to resume. But for now we see position unwinding, uncertainty about the Fed's intentions and next month's US fiscal risks keeping the dollar at current levels close to its lows for the year against the euro, pound and Swiss franc”.
DXY levels to consider
The index is now losing 0.02% at 80.42 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 initial barrier aligns at 81.35 (high Sep.17) followed by 81.93 (high Sep.11) and finally 82.50 (high Aug.2).