U.S. dollar: Ok we get the negativity

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When it comes to the U.S. dollar we get the negativity...But kissing the 1 year low on the DXY at 79.00 this morning is now overdone and sentiment by analysts and talking heads is as blind as the consensus long USD trade was in the 1Q '13.

Image courtesy iChaz: http://www.flickr.com/people/chazoid/ We know weaker economic data in U.S. and Washington's futility have pushed the Fed out to 1Q or beyond, but the both fundi's and technicals say this is a trade to BUY with a longer term investment view to BUY.

It won't be a straight course but this is a key technical level to watch DXY bounce, with a stop at 78.00.

This gives us support all the way back nearly 2 years to a level the U.S. dollar has bounced more than 30 times.

Watch in tandem yields on UST 10yr where 2.50 looks to be basing after post-taper and Washington yield compression settles in.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

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