Chart USD Index DXY Update: Room for a minor test higher
Cautious trade around 97.00 has given way to the anticipated break higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 99.00 | ** | congestion | S1 | 97.00 | * | congestion | |
| R3 | 98.50 | * | congestion | S2 | 96.50 | * | 11 Feb (w) low | |
| R2 | 98.00 | * | congestion | S3 | 96.35 | congestion | ||
| R1 | 97.50 | ** | congestion | S4 | 96.00 | * | congestion |
Asterisk denotes strength of level
08:40 GMT - Cautious trade around 97.00 has given way to the anticipated break higher, with prices reaching 97.25 before settling back as overbought intraday studies unwind. Daily readings are mixed/positive and oversold weekly stochastics are flattening, suggesting room for continuation towards congestion resistance at 97.50. But the bearish weekly Tension Indicator and negative longer-term charts should limit any tests in renewed selling interest. Following cautious trade, fresh losses are looked for. Support is at congestion around 97.00. But a close below the 96.50 weekly low of 11 February is needed to turn sentiment negative and extend February losses initially towards 96.00.