Chart USD Index DXY Update: Cautious trade - background under pressure
The break below 99.00 is giving way to consolidation
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.55 | break level | S1 | 98.58 | 3 Jun low | |||
| R3 | 100.00 | ** | congestion | S2 | 98.00 | * | congestion | |
| R2 | 99.50 | congestion | S3 | 97.70 | * | early-Mar 22 (w) low | ||
| R1 | 99.00 | break level | S4 | 96.50 | * | congestion |
Asterisk denotes strength of level
09:05 BST - The break below 99.00 is giving way to consolidation, with prices currently trading around 98.85. A tick higher in daily stochastics suggests room for a test above 99.00. But the negative daily Tension Indicator and bearish longer-term charts are expected to limit scope in renewed selling interest beneath congestion around 99.50. Following cautious trade, fresh losses are looked for. A break below the 98.58 low of 3 June will open up critical support at the 97.70 weekly low of early-March 2022 and congestion around 98.00. A further close beneath here will turn sentiment outright negative and extend September 2022 losses initially towards congestion around 96.50.