US Dollar Index advances to 79.50

October 29, 2013

London (Oct 29)  The greenback, tracked by the US Dollar Index, is extending its recovery from last week’s troughs near the key support at 79.00, hovering over the area of 79.50 on Tuesday.

DXY focus on US docket

The index is advancing for the third consecutive session, gearing up for an assault of the 79.50 region ahead of key releases in the US economy. The USD could gather further support in case Retail Sales print a positive result for September while the S&P/Case-Shiller index would give a gauge of the housing prices in the US. Ahead of the next big event due tomorrow, the FOMC meeting, Strategist Jacqui Douglas at TD Securities commented, “Market expectations are for an unchanged policy stance, and current market positioning suggests that investors are looking for a continued dovish bias, with no mention of tapering expected”.

DXY levels to watch

The index is now up 0.14% at 79.45 with the initial resistance at 80.18 (high Oct.4) ahead of 80.64 (high Sep.26) and finally 80.75 (high oct.16). On the downside, a break below 79.13 (low Oct.23) would aim for 78.93 (low Feb.1) and finally 78.60

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