Chart USD Index DXY Update: Extending late-November losses
The anticipated break below 99.00 has reached support at the 98.80 Fibonacci retracement
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.40 | ** | 21 Nov (m) high | S1 | 98.80 | * | 38.2% ret of Sep-Nov rally | |
| R3 | 100.00 | ** | congestion | S2 | 98.50 | * | congestion | |
| R2 | 99.50 | * | break level | S3 | 98.30 | ** | 50% ret of Sep-Nov rally | |
| R1 | 99.00 | * | congestion | S4 | 98.00 | * | congestion |
Asterisk denotes strength of level
09:10 GMT - The anticipated break below 99.00 has reached support at the 98.80 Fibonacci retracement, where unwinding oversold intraday studies are prompting short-term reactions. Daily readings remain under pressure and broader weekly charts are turning down, highlighting a deterioration in sentiment and room for further losses in the coming sessions. A break below 98.80 will add weight to already bearish sentiment, and extend late-November losses towards congestion around 98.50. Just lower is the 98.30 retracement, where already oversold daily stochastics could prompt short-covering/consolidation. Meanwhile, a close back above congestion resistance at 99.00 will help to stabilise price action and prompt consolidation beneath 99.50.