Chart USD Index DXY Update: Consolidating gains
The test of strong resistance at congestion around 103.00 and the 103.15 Fibonacci retracement is giving way to consolidation
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 103.85 | ** | 61.8% ret of Jun-Sep fall | S1 | 102.50 | ** | congestion | |
R3 | 103.55 | * | 8 Aug (w) high | S2 | 102.00 | * | congestion | |
R2 | 103.15 | ** | 50% ret of Jun-Sep fall | S3 | 101.50 | break level | ||
R1 | 103.00 | ** | congestion | S4 | 101.00 | ** | congestion |
Asterisk denotes strength of level
14:00 BST - The test of strong resistance at congestion around 103.00 and the 103.15 Fibonacci retracement is giving way to consolidation, as intraday studies turn down. Overbought daily stochastics are also ticking lower, highlighting room for a minor pullback in the coming sessions. However, the positive daily Tension Indicator and rising weekly charts are expected to limit scope in renewed buying interest above congestion support at 102.50. Following corrective trade, fresh gains are looked for. A close above 103.15 will extend September gains towards the 103.55 weekly high of 8 August. Beyond here is the 103.85 retracement, but by-then overstretched weekly studies could limit any initial tests in consolidation. Meanwhile, a close below 102.50 will add weight to sentiment and prompt a deeper pullback towards 102.00.