Chart USD Index DXY Update: Limited tests lower
Consolidation around congestion resistance at 98.00 has given way to a pullback to 97.35
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 99.50 | ** | 15 Jan (m) high, cong | S1 | 97.50 | ** | congestion | |
| R3 | 99.00 | ** | congestion | S2 | 97.00 | * | congestion | |
| R2 | 98.50 | * | congestion | S3 | 96.50 | * | 11 Feb (w) low | |
| R1 | 98.00 | * | congestion | S4 | 96.35 | congestion |
Asterisk denotes strength of level
08:50 GMT - Consolidation around congestion resistance at 98.00 has given way to a pullback to 97.35, where oversold intraday studies are prompting a bounce back into consolidation above congestion support at 97.50. Overbought daily stochastics are ticking lower, suggesting room for a fresh test below 97.50. But the rising daily Tension Indicator and improving weekly charts should limit scope in renewed buying interest/consolidation towards further congestion around 97.00. Following cautious/corrective trade, fresh gains are looked for. A close above 98.00 is needed to improve price action and open up a test of further congestion around 98.50. Deteriorating longer-term readings should limit any tests in renewed selling interest/consolidation.