Chart USD Index DXY Update: Extending August losses
Cautious trade has given way to anticipated selling interest
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 99.00 | * | break level | S1 | 97.00 | * | congestion | |
| R3 | 98.50 | congestion | S2 | 96.38 | ** | 1 Jul YTD low | ||
| R2 | 98.00 | * | congestion | S3 | 96.00 | * | historic congestion | |
| R1 | 97.50 | * | congestion | S4 | 95.25 | ** | 76.4% ret of 2021-2022 rally |
Asterisk denotes strength of level
09:05 BST - Cautious trade has given way to anticipated selling interest, as intraday studies turn down, with prices approaching congestion support at 97.00. Daily readings are under pressure and broader weekly charts are also deteriorating, highlighting room for still deeper losses in the coming sessions. A break below 97.00 will extend August losses towards critical support at the 96.38 current year low of 1 July. A close beneath here would confirm a more significant bear trend, as January losses then focus on the 95.25 Fibonacci retracement. Meanwhile, any tests above congestion resistance at 97.50 should give way to consolidation beneath 98.00.