Chart USD Index DXY Update: Room for lower in the coming sessions
Sharp losses have reached support at 108.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 110.00 | ** | congestion | S1 | 108.00 | pivot | ||
| R3 | 109.50 | minor congestion | S2 | 107.80 | * | 50% ret of Dec-Jan rally | ||
| R2 | 109.00 | * | congestion | S3 | 107.50 | * | congestion | |
| R1 | 108.50 | minor break level | S4 | 107.25 | ** | 61.8% ret of Dec-Jan rally |
Asterisk denotes strength of level
13:40 GMT - Sharp losses have reached support at 108.00, where unwinding oversold intraday studies are prompting a bounce back to resistance at 108.50. A fresh test above here cannot be ruled out, but negative daily readings and deteriorating weekly charts are expected to limit scope in renewed selling interest towards congestion resistance at 109.00. Following corrective trade, further losses are looked for. A break below 108.00 will add weight to sentiment and extend losses towards congestion around 107.50. Still lower is the 107.25 Fibonacci retracement. Meanwhile, a close above 109.00, if seen, would stabilise price action and prompt consolidation beneath 109.50.