Chart USD Index DXY Update: Extending March losses
Cautious trade has given way to a sharp pullback
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.30 | congestion highs | S1 | 98.70 | ** | 38.2% ret of Jan-Mar rally | ||
| R3 | 100.00 | ** | congestion | S2 | 98.50 | * | congestion | |
| R2 | 99.50 | * | congestion | S3 | 98.00/10 | ** | congestion; 50% ret | |
| R1 | 99.00 | ** | congestion | S4 | 97.50 | * | congestion |
Asterisk denotes strength of level
09:10 BST - Cautious trade has given way to a sharp pullback, with prices currently consolidating the test of support at the 98.70 Fibonacci retracement. Daily readings have turned down and overbought weekly stochastics are unwinding, highlighting room for further losses in the coming sessions. A break below 98.70 will open up congestion around 98.50, with room for continuation down to 98.00/10. However, the rising weekly Tension Indicator and positive longer-term charts should limit any initial tests of here in short-covering/consolidation. Meanwhile, resistance is lowered to congestion around 99.00. A close above here, if seen, would help to stabilise price action and prompt consolidation beneath further congestion around 99.50.