Chart USD Index DXY Update: Room for a corrective bounce
Cautious trade is giving way to a bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 99.50 | congestion | S1 | 96.50 | * | congestion | ||
| R3 | 99.00 | break level | S2 | 96.38 | * | 1 Jul YTD low | ||
| R2 | 98.00 | * | congestion | S3 | 96.00 | ** | congestion | |
| R1 | 97.60 | * | 12 Jun (w) low | S4 | 95.25 | ** | 76.4% ret of 2021-2022 rally |
Asterisk denotes strength of level
09:10 BST - Cautious trade is giving way to a bounce, as intraday studies turn higher, with focus turning to resistance at the 97.60 weekly low of 12 June. Oversold daily stochastics are unwinding and the daily Tension Indicator is turning up, highlighting room for a break towards congestion around 98.00. Beyond here is 99.00. But negative weekly charts and bearish longer-term readings are expected to limit any tests of here in consolidation/selling interest. Meanwhile, support remains down to the 96.38 current year low of 1 July. A later close beneath here will add weight to sentiment and open up congestion around 96.00, with room for extension of September 2022 losses towards the 95.25 Fibonacci retracement.