Chart USD Index DXY Update: Drifting higher
The break above 99.00 has reached 99.23
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.35 | * | 15 Jul (w) low | S1 | 99.00 | ** | congestion | |
| R3 | 100.00 | ** | congestion | S2 | 98.60 | ** | 76.4% ret of Apr-Jun rally | |
| R2 | 99.50 | ** | congestion | S3 | 97.95/00 | ** | 61.8% ret; congestion | |
| R1 | 99.23 | 26 Aug high | S4 | 97.63 | ** | Apr-May lows |
Asterisk denotes strength of level
09:00 BST - The break above 99.00 has reached 99.23, where mixed intraday studies are prompting fresh consolidation. Daily stochastics continue to track higher and the daily Tension Indicator is also improving, suggesting room for further gains in the coming sessions. A break above 99.23 will open up congestion around 99.50. But negative weekly charts should limit any initial break above here in renewed selling interest/consolidation beneath strong congestion resistance at 100.00.
Meanwhile, a close back below 99.00 would help to stabilise price action. But a further close below the 98.60 Fibonacci retracement would turn sentiment negative and extend late-June losses towards strong support at 97.95/00.