Chart USD Index DXY Update: Under pressure
Cautious trade is giving way to the anticipated break below 104.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 105.00 | ** | break level | S1 | 103.40 | break level | ||
| R3 | 104.80 | ** | 30 Jul (m) high | S2 | 103.00 | ** | congestion | |
| R2 | 104.70 | ** | 76.4% ret of Jun-Sep fall | S3 | 102.50 | ** | congestion | |
| R1 | 104.00 | * | congestion | S4 | 102.50 | ** | congestion |
Asterisk denotes strength of level
13:35 GMT - Cautious trade is giving way to the anticipated break below 104.00, as intraday studies turn down, with prices currently trading around 103.85. Daily stochastics and the daily Tension Indicator are also under pressure, highlighting room for a deeper pullback and test of support at the 103.40 break level. However, the rising weekly Tension Indicator is expected to limit any initial tests in fresh consolidation. Meanwhile, a close back above congestion resistance at 104.00 will turn sentiment neutral once again, and prompt renewed consolidation beneath strong resistance at the 104.70 Fibonacci retracement and the 104.80 monthly high of 30 July. A close above here is needed to turn sentiment positive and confirm continuation of September gains, as focus then turns to resistance at the 105.00 break level, ahead of 105.50.