Chart USD Index DXY Update: Strong support at 97.80/00
Cautious trade has given way to anticipated losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.00 | ** | congestion | S1 | 98.25 | 20 Jan low | ||
| R3 | 99.50 | * | break level | S2 | 98.00 | * | congestion | |
| R2 | 99.00 | * | congestion | S3 | 97.80 | ** | 61.8% ret of Sep-Nov rally | |
| R1 | 98.50 | * | congestion | S4 | 97.50 | ** | congestion |
Asterisk denotes strength of level
09:10 GMT - Cautious trade has given way to anticipated losses, with prices currently balanced above the 98.25 low of 20 January. Daily stochastics and the daily Tension Indicator continue to track lower, highlighting room for further losses, with focus to turn to strong support at the 97.80 Fibonacci retracement and congestion around 98.00. Oversold daily stochastics could limit any initial tests in consolidation, before deteriorating weekly charts prompt a break and extend mid-January losses towards 97.50. Meanwhile, resistance is lowered to congestion around 98.50. A close above here, if seen, will help to stabilise price action and prompt consolidation beneath further congestion around 99.00.