Back
22 Oct 2013
Flash: Bearish risks in DXY intact - JPMorgan
FXstreet.com (Barcelona) - The bearish risks remain intact following the breakout of 81.00/80.50 support zone for the DXY, notes John Normand, FX Analyst at JP Morgan Securities.
Key Quotes
"While that index is attempting to hold the next line of key support in the 79.70/55 area (trendline and 76.4% retracement from the Feb ’12 low), there is still little evidence of a sustained reversal. In this regard, the DXY has struggled against the first line of important resistance levels highlighted by the 80.65/81.00 breakdown zone."
"While this area holds, the bearish risks should prevail. Note that a violation of the 79.55 area would turn the focus to the 78.92/60 support zone which includes the Feb’13/Sept’12 lows."
"Also, note the JPM USD Index is testing important support at the 83.00/82.75 medium term range lows. Violations would imply a more important topping pattern is underway initially into the 82.25/82.00 area."
Key Quotes
"While that index is attempting to hold the next line of key support in the 79.70/55 area (trendline and 76.4% retracement from the Feb ’12 low), there is still little evidence of a sustained reversal. In this regard, the DXY has struggled against the first line of important resistance levels highlighted by the 80.65/81.00 breakdown zone."
"While this area holds, the bearish risks should prevail. Note that a violation of the 79.55 area would turn the focus to the 78.92/60 support zone which includes the Feb’13/Sept’12 lows."
"Also, note the JPM USD Index is testing important support at the 83.00/82.75 medium term range lows. Violations would imply a more important topping pattern is underway initially into the 82.25/82.00 area."