Chart USD Index DXY Update: Consolidating - studies under pressure
Still little change, as prices extend consolidation beneath 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
13:20 GMT - Still little change, as prices extend consolidation beneath congestion resistance at 104.00. Intraday studies are turning down, highlighting room for a test of support at the 103.37 monthly low of 5 November. But rising oversold daily stochastics and the improving daily Tension Indicator are expected to limit any immediate tests in consolidation, before negative weekly charts prompt a break. A close beneath here will add weight to sentiment and extend January losses towards congestion around 103.00. Still lower is the 102.55 Fibonacci retracement, where short-covering/consolidation could develop. Meanwhile, resistance remains at 104.00 and extends to the 104.39 high of 6 March. A close above here, if seen, would improve price action and prompt a corrective bounce towards 105.00, where selling interest is expected to appear.