Chart USD Index DXY Update: Prices remain under pressure
Cautious trade has given way to the anticipated break below 107.50
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 109.00 | * | congestion | S1 | 107.00 | * | break level | |
| R3 | 108.50 | minor break level | S2 | 106.55 | ** | 76.4% ret of Dec-Jan rally | ||
| R2 | 108.00 | pivot | S3 | 106.00 | ** | break level | ||
| R1 | 107.50 | * | congestion | S4 | 105.42 | ** | 6 Dec (m) low |
Asterisk denotes strength of level
13:55 GMT - Cautious trade has given way to the anticipated break below 107.50, as intraday studies turn down, with sharp losses currently balanced above support at 107.00. Daily readings are also under pressure and broader weekly charts are falling, highlighting a bearish tone and room for further losses in the coming sessions. A break beneath here will add weight to sentiment and extend January losses towards the 106.55 Fibonacci retracement. However, already oversold daily stochastics could limit any initial tests in consolidation/short-covering. Meanwhile, a close back above resistance at 107.50, if seen, will turn sentiment neutral and prompt consolidation beneath 108.00.