Published: 2025-01-10T14:02:15.000Z
Chart USD Index DXY Update: Extending gains
Senior Technical Strategist
1
Cautious trade is giving way to a sharp break higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 113.00 | * | Sep-Oct 2022 congestion | S1 | 109.00 | * | congestion | |
| R3 | 112.00 | ** | break level | S2 | 108.50 | minor break level | ||
| R2 | 111.20 | ** | 76.4% ret of 2022-2023 fall | S3 | 108.00 | pivot | ||
| R1 | 110.00 | ** | congestion | S4 | 107.50 | intraday break level |
Asterisk denotes strength of level
13:50 GMT - Cautious trade is giving way to a sharp break higher, with prices reaching 110.00 before settling lower. Daily readings have ticked higher and broader weekly charts are rising, suggesting potential for still further strength in the coming sessions. A close above here will further improve sentiment and extend July 2023 gains towards the 111.20 Fibonacci retracement. Already overbought weekly stochastics, however, could limit any initial tests in profit-taking/consolidation. Meanwhile, a close back below 109.00 would turn sentiment neutral and give way to consolidation around 108.50.