Weekly Chart USD Index DXY: Gains capped in range - background under pressure

The anticipated (JPY-driven) test of support at the 98.60 Fibonacci retracement is giving way to a bounce, as daily stochastics and the flat daily Tension Indicator turn higher,

with prices currently trading around 99.15.

Oversold weekly stochastics are also edging higher, suggesting room for continuation towards congestion resistance at 99.50. But the bearish weekly Tension Indicator and mixed/negative longer-term charts should limit any break in renewed selling interest beneath further congestion around 100.00. A close above here, however, would improve sentiment and complete a multi-week congestion pattern, as August-September gains then initially focus on 101.50.

Meanwhile, support remains at 98.60.

Following cautious trade, fresh losses are looked for. A later close beneath here will add weight to sentiment and extend losses from the 101.80 current year high of 24 June towards strong support at the 97.95 longer-term Fibonacci retracement and congestion around 98.00. Just beneath here is further congestion around 97.50. But mixed longer-term charts could limit any initial tests in short-covering/consolidation, before any further losses unfold.