Chart USD Index DXY Update: Extending January losses
Cautious trade around 104.00 has given way to anticipated losses
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 107.00 | ** | break level | S1 | 103.37 | ** | 5 Nov (m) low | |
| R3 | 106.00 | ** | congestion | S2 | 103.00 | * | congestion | |
| R2 | 105.00 | break level | S3 | 102.55 | ** | 76.4% ret of Sep-Jan rally | ||
| R1 | 104.00 | * | congestion | S4 | 102.00 | ** | congestion |
Asterisk denotes strength of level
14:00 GMT - Cautious trade around 104.00 has given way to anticipated losses, as intraday studies continue to track lower, with prices currently balanced above support at the 103.37 monthly low of 5 November. Daily readings are also negative and broader weekly charts are bearish, highlighting room for a break and extension of January losses towards congestion around 103.00. Still lower is the 102.55 retracement, but oversold daily stochastics should limit any tests of here in short-covering/consolidation. Meanwhile, resistance is lowered to 104.00. A close above here, if seen, would turn sentiment neutral and prompt consolidation beneath 105.00.