Chart USD Index DXY Update: Cautious trade
The anticipated test of congestion support at 97.50 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 99.50 | ** | 15 Jan (m) high, cong | S1 | 97.50 | ** | congestion | |
| R3 | 99.00 | ** | congestion | S2 | 97.00 | * | congestion | |
| R2 | 98.50 | * | congestion | S3 | 96.50 | * | 11 Feb (w) low | |
| R1 | 98.00 | * | congestion | S4 | 96.35 | congestion |
Asterisk denotes strength of level
08:55 GMT - The anticipated test of congestion support at 97.50 is giving way to consolidation, as oversold intraday studies flatten, with prices currently trading around 97.65. Overbought daily stochastics are under pressure and the rising daily Tension Indicator is flattening, suggesting room for further losses in the coming sessions. A break below 97.50 will add weight to sentiment and open up further congestion around 97.00. But rising weekly charts should limit any initial tests in consolidation. Meanwhile, resistance remains at congestion around 98.00 and should cap any immediate tests higher. A break above here, however, will open up a test of further congestion around 98.50, where renewed selling interest is expected to appear.