Published: 2024-06-19T11:42:03.000Z
Chartbook: Chart USD Index DXY: Consolidating - potential for a minor test lower in the coming weeks
Senior Technical Strategist
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There has been little change in price action in 2024Q2
There has been little change in price action in 2024Q2, with prices settling into cautious trade above support within 104.00 - 105.00 following the pullback from beneath critical resistance at the 107.15 Fibonacci retracement.
Flat weekly stochastics are coming under pressure, and the weekly Tension Indicator is marginally bearish, suggesting potential for a test lower into early 2024Q3. A break below congestion around 104.00 will add weight to sentiment and open up the 102.36 monthly low of 8 March.
However, any deeper losses are expected to give way to fresh consolidation above the 101.40 Fibonacci retracement, as monthly charts maintain a mixed tone. A close below 101.40, however, would turn sentiment outright negative and open up critical support at the 99.58 year low of July 2023 and congestion around 100.00..
Meanwhile, resistance is up to the 107.15 retracement.
Mixed monthly charts are expected to limit any fresh tests higher in renewed selling interest beneath here.
However, a close above 107.15, if seen, would turn sentiment positive and extend July 2023 gains from 99.58 towards the 109.00 retracement, where deteriorating longer-term charts are expected to prompt renewed selling interest.