Chart USD Index DXY Update: Under pressure
Cautious trade beneath 99.00/18 has given way to a sharp fall to congestion support at 98.00
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.00 | ** | congestion | S1 | 98.00 | ** | congestion | |
| R3 | 99.50 | * | congestion | S2 | 97.63 | * | 17 Apr (m) low | |
| R2 | 99.00/18 | ** | congestion; 8 Apr high | S3 | 97.50 | ** | congestion; 61.8% ret | |
| R1 | 98.50 | * | congestion | S4 | 97.00 | ** | congestion |
Asterisk denotes strength of level
08:55 BST - Cautious trade beneath 99.00/18 has given way to a sharp fall to congestion support at 98.00, where flat oversold intraday studies are prompting renewed consolidation. Daily readings have turned down, highlighting room for a break beneath here towards the 97.63 monthly low of 17 April. However, oversold intraday studies could limit any initial tests in consolidation, before deteriorating weekly charts prompt further losses. A close beneath here would add weight to sentiment and extend late-March losses below 97.50 towards 97.00. Meanwhile, resistance is lowered to congestion around 98.50. A close above here, if seen, would help to stabilise price action and prompt consolidation beneath 99.00/18.