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25 Feb 2015
DXY could test 96.00 in the medium term – Westpac
FXStreet (Edinburgh) - The US dollar index could resume its upside with the next target being 96.00, suggested strategists at the Australian Westpac.
Key Quotes
“June Fed rate hike prospects have eased yet further in the immediate wake of the Fed Chair Yellen’s testimony and all the key US business and consumer confidence gauges continue to ease”.
“We view these negatives however mostly as a reason to scale back topside USD targets rather than as an excuse to turn outright USD negative”.
“USD index should not trade much below 94.0 in coming days if at all with 96.0 a realistic chance before the quarter is out”.
“The DXY remains below a significant long term resistance level at 95.86 (long term cloud / Fibonacci retracement). Recent consolidation has seen short term momentum indicators unwind substantially and a positive bias is now emerging. Long term resistance should remain under pressure”.
Key Quotes
“June Fed rate hike prospects have eased yet further in the immediate wake of the Fed Chair Yellen’s testimony and all the key US business and consumer confidence gauges continue to ease”.
“We view these negatives however mostly as a reason to scale back topside USD targets rather than as an excuse to turn outright USD negative”.
“USD index should not trade much below 94.0 in coming days if at all with 96.0 a realistic chance before the quarter is out”.
“The DXY remains below a significant long term resistance level at 95.86 (long term cloud / Fibonacci retracement). Recent consolidation has seen short term momentum indicators unwind substantially and a positive bias is now emerging. Long term resistance should remain under pressure”.