FX March 16, 2023 / 02:13 pm UTC

Chart USD Index DXY Update: Choppy trade giving way to consolidation

By Mike Macdonald



**break level;
38.2% ret

105.88**8 Mar YTD high

103.00*break level

102.59**14 Feb (w) low

Asterisk denotes strength of level

14:00 GMT - The anticipated test above congestion resistance at 105.00 has not been seen, as intraday studies track lower, with sellers at 105.10 pushing prices into consolidation around 104.50. A trade towards congestion support at 104.00 cannot be ruled out, but unwinding oversold daily stochastics are expected to limit any immediate tests in fresh range trade. The daily Tension Indicator continues to track lower, however, and broader weekly charts are negative, suggesting room for deeper losses. But a close below 103.50 is needed to turn sentiment outright negative and extend March losses towards the 102.59 weekly low of 14 February. Meanwhile, any fresh tests above 105.00 should meet selling pressure beneath critical resistance at 106.00/15.

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