Chart USD Index DXY Update: Consolidating gains - background studies remain positive
The anticipated test of 101.00 is giving way to consolidation above here
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 102.00 | ** | congestion | S1 | 101.00 | ** | congestion | |
| R3 | 101.80 | ** | 24 Jun YTD high | S2 | 100.50 | break level | ||
| R2 | 101.65 | ** | 28 Jul (m) high | S3 | 100.00 | ** | congestion | |
| R1 | 101.50 | * | range highs | S4 | 99.50 | * | congestion |
Asterisk denotes strength of level
08:55 BST - The anticipated test of 101.00 is giving way to consolidation above here, as overbought intraday studies unwind and overbought daily stochastics flatten. The daily Tension Indicator continues to rise, however, and broader weekly charts are positive, pointing to room for still further gains in the coming sessions. Late-August gains are expected to focus on resistance at the 101.50 range highs and the 1011.65 monthly high of 28 July. But a close above critical resistance at the 101.80 current year high of 24 June is needed to turn sentiment positive and confirm continuation of broader January gains.
Meanwhile, a close below 101.00 will help to stabilise sentiment and prompt consolidation above support at 100.50, before higher levels attract once again.