Chart USD Index DXY Update: Further range trade - background under pressure
Little change, as prices extend consolidation following the test of congestion resistance at 104.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 106.00 | ** | congestion | S1 | 103.37 | ** | 5 Nov (m) low | |
| R3 | 105.00 | break level | S2 | 103.00 | * | congestion | ||
| R2 | 104.39 | 6 Mar high | S3 | 102.55 | ** | 76.4% ret of Sep-Jan rally | ||
| R1 | 104.00 | * | congestion | S4 | 102.00 | ** | congestion |
Asterisk denotes strength of level
13:30 GMT - Little change, as prices extend consolidation following the test of congestion resistance at 104.00. Intraday studies are turning down, highlighting room for a minor pullback. But rising oversold daily stochastics and the improving daily Tension Indicator are expected to limit initial scope in further consolidation above support at the 103.37 monthly low of 5 November. Mixed/negative weekly charts, however, highlight potential for a later break beneath here and extension of January losses towards congestion around 103.00. Still lower is the 102.55 retracement, where short-covering/consolidation could develop. Meanwhile, a close above the 104.39 high of 6 March would improve price action and prompt a corrective bounce towards 105.00, where selling interest is expected to appear.