FX July 28, 2022 / 12:45 pm UTC

Chart USD Index DXY Update: Consolidating - studies leaning lower

By Mike Macdonald




Levels
Imp
Comment


Levels
Imp
Comment
R4
109.00**76.4% ret of
2001-2008 fall

S1
106.00*congestion
R3
108.00

break level

S2
105.79
*15 Jun (m) high
R2
107.50
break level

S3
105.00*congestion
R1
107.00*congestion

S4
104.00
congestion

Asterisk denotes strength of level


13:35 BST - The retest of resistance within 107.00/50 is giving way to a pullback to congestion around 106.00, where unwinding oversold intraday studies and oversold daily stochastics are prompting short-term reactions. The daily Tension Indicator continues to track lower and weekly charts are bearish, highlighting a deterioration in sentiment and room for further losses in the coming sessions. A later break below 106.00 will open up the 105.79 monthly high of 15 June, with a further close beneath here adding weight to already bearish price action and leading to deeper losses towards congestion around 105.00. Meanwhile, an unexpected close above 107.50 will delay downside potential and prompt consolidation beneath 108.00.

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