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Forex pairs in this Article » GBP/USD (Barcelona) - The DXY continues to reflect a combination of euro and Pound strength, the “risk-on” attitude by investors and an apparent belief by global traders Bernanke and Yellen will keep up the QE3 program despite some of their colleagues’ desires to do otherwise.

Plenty of global news and data to influence the DXY Tuesday

The relative strength in two of the key DXY components – the euro and the British Pound – is continuing to weigh on the DXY technically. Each of those currencies sports uber-bullish charts and seem to be dwarfing any nascent strength percolating in the US and in the greenback.

Tuesday, the DXY will be driven directionally by the following news / data items:
• Japanese Machinery Orders
• Aussie Consumer Confidence
• and, German inflation data

Technical outlook for the DXY

At 80.16 and falling, technicians say the DXY appears to be on track for at least a test of at least 79.85 and possibly down to 79.63. The DXY bulls can still make a stand down there and rocket the greenback higher, but they certainly would loose some more of their bravado should 79.63 be broken. The ultimate “line in the sand” for DXY bulls comes in at 79.00. Resistance for DXY comes in at the previous support of 80.53.
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