Weekly Chart USD Index DXY: Room for further losses

Consolidation above 101.00 has given way to sharp losses in volatile JPY-driven trade,

with prices testing support at 99.50 - 99.70 before settling into cautious trade above the 99.70 Fibonacci retracement.

Daily readings are under pressure, highlighting room for a later break and extension of losses from the 101.80 current year high of 24 June.

Immediate focus will turn back to congestion around 99.50, ahead of the 99.20 retracement and further congestion around 99.00.

Continuation down to the 98.60 retracement cannot be ruled out, as broader weekly charts also come under pressure.

Meanwhile, resistance is at congestion around 100.00.

A close above here would help to stabilise price action.

Still higher is strong resistance within the multi-week distribution top within the 100.75 - 101.80 range.

A close above here is needed, not seen, to turn sentiment positive once again and extend 2026 gains towards the 102.85 Fibonacci retracement.