Chart USD Index DXY Update: Room for a corrective bounce
Consolidation above congestion support at 98.00 has given way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 102.00 | ** | break level | S1 | 99.00 | break level | ||
| R3 | 101.00 | * | break level | S2 | 98.00 | * | congestion | |
| R2 | 100.16 | ** | 27 Sep 2024 (y) low | S3 | 97.70 | * | Feb-Mar 2022 break level | |
| R1 | 100.00 | ** | congestion | S4 | 96.50 | * | congestion |
Asterisk denotes strength of level
12:15 BST - Consolidation above congestion support at 98.00 has given way to a bounce, with prices reaching 99.65 before settling into consolidation above 99.00. Oversold daily stochastics are turning higher, unwinding positive divergence, and the bearish daily Tension Indicator is flattening, suggesting potential for fresh tests higher in the coming sessions. Resistance is at 100.00/16. A close above here will open up the 101.00 break level. But negative weekly charts are expected to limit any initial tests in renewed consolidation. Meanwhile, a break below 99.00 will open up strong support at 97.70/00, where improving daily readings are expected to prompt consolidation. A close beneath here would turn sentiment negative and extend September 2022 losses towards congestion within 96.00/50.