Chart USD Index DXY Update: Room for a minor test higher
Cautious trade has given way to a break above 99.00, with prices reaching 99.20 before settling into consolidation above 99.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.00 | ** | congestion | S1 | 99.00 | ** | congestion | |
| R3 | 99.86 | ** | 2 Sep (w) high | S2 | 98.60 | ** | 76.4% ret of Apr-Jun rally | |
| R2 | 99.50 | ** | congestion | S3 | 97.95/00 | ** | 61.8% ret; congestion | |
| R1 | 99.20 | minor congestion | S4 | 97.63 | ** | 17 Apr - 6 May (m) lows |
Asterisk denotes strength of level
09:00 BST - Cautious trade has given way to a break above 99.00, with prices reaching 99.20 before settling into consolidation above 99.00. Daily readings are improving and oversold weekly stochastics are turning up, suggesting room for further strength in the coming sessions towards congestion around 99.50. However, the bearish weekly Tension Indicator and mixed/negative longer-term charts should limit any further gains in renewed selling interest/consolidation beneath the 99.86 weekly high of 2 September.
Meanwhile, support is raised to congestion around 99.00. However, a close below the 98.60 Fibonacci retracement will turn sentiment negative and confirm continuation of late-June losses towards strong support within the 97.95 retracement and congestion around 98.00.