FX November 24, 2022 / 01:21 pm UTC

Chart USD Index DXY Update: Under pressure

By Mike Macdonald




Levels
Imp
Comment


Levels
Imp
Comment
R4
108.32**38.2% ret of
Nov fall

S1
105.34**15 Nov (w) low
R3
108.00
**break level

S2
105.00
**38.2% ret of
2021-2022 rally
R2
107.00*congestion

S3
104.64**10 Aug (m) low
R1
106.00*congestion

S4
104.00*congestion

Asterisk denotes strength of level


13:10 GMT - Consolidation around 107.00 has given way to fresh losses, with prices currently trading beneath further congestion around 106.00. Unwinding oversold intraday studies are prompting short-term reactions above 105.60, but a tick lower in daily readings and negative weekly charts highlight a bearish tone and room for still deeper losses in the coming sessions. Critical support is at the 105.34 weekly low of 15 November. A close beneath here will add fresh weight to already negative sentiment and extend September losses towards the 105.00 Fibonacci retracement. Further slippage towards the 104.64 monthly low of 10 August cannot be ruled out. Meanwhile, any tests above 106.00 should meet selling interest beneath 107.00.

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