Chart USD Index DXY Update: Prices under pressure
Consolidation has given way to a sharp break lower in heightened volatility
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 101.50 | intraday break level | S1 | 100.00 | ** | congestion | ||
| R3 | 101.00 | ** | congestion base | S2 | 99.70 | ** | 50% ret of Apr-Jun rally | |
| R2 | 100.75 | congestion | S3 | 99.50 | ** | congestion | ||
| R1 | 100.35 | ** | 15 Jul (w) low | S4 | 99.20 | ** | 61.8% ret of Apr-Jun rally |
Asterisk denotes strength of level
09:15 BST - Consolidation has given way to a sharp break lower in heightened volatility, with prices reaching congestion support at 100.00 before settling into fresh consolidation. Daily stochastics and the daily Tension Indicator are falling, and broader weekly charts are also coming under pressure, highlighting room for further losses in the coming sessions. A break back below 100.00 will open up the 99.70 Fibonacci retracement, with room to extend late-June losses towards 99.50. Meanwhile, resistance is lowered to the 100.35 weekly low of 15 July. A close above here would help to stabilise price action and prompt consolidation beneath 100.75 - 101.00.