Weekly Chart USD Index DXY: Lower in range - studies under pressure

Anticipated minor gains have tested above resistance at the 99.50 congestion lows, with prices meeting renewed selling interest beneath 100.00, before settling lower once again.

Immediate focus is back on support at the 98.60 Fibonacci retracement. But flat oversold weekly stochastics could limit any initial retests in consolidation, before the bearish weekly Tension Indicator prompts a break. A close beneath here will add weight to sentiment and extend losses from the 101.80 current year high of 24 June towards strong support at the 97.95 longer-term Fibonacci retracement and congestion around 98.00. Just beneath here is further congestion around 97.50. But mixed longer-term charts could limit any initial tests in short-covering/consolidation, before further losses unfold.

Meanwhile, resistance remains at 99.50 and extends to 100.00.

Daily stochastics are unwinding overbought areas and the positive daily Tension Indicator is showing early signs of turning down, suggesting any immediate retests of here should be limited in renewed selling interest. A close above 100.00, however, will improve price action and extend late-August gains towards 100.50, where fresh selling interest is expected to appear.