Chart USD Index DXY Update: Limited tests higher
Cautious trade above strong support at the 98.60 Fibonacci retracement is giving way to a push higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.35 | ** | 15 Jul (w) low | S1 | 98.60 | ** | 76.4% ret of Apr-Jun rally | |
| R3 | 100.00 | ** | congestion | S2 | 98.00 | ** | congestion | |
| R2 | 99.50 | ** | congestion | S3 | 97.63 | ** | Apr-May lows | |
| R1 | 99.00 | ** | congestion | S4 | 97.00 | ** | congestion |
Asterisk denotes strength of level
09:00 BST - Cautious trade above strong support at the 98.60 Fibonacci retracement is giving way to a push higher, as intraday studies improving, with prices currently pressuring congestion resistance at 99.00. Oversold daily stochastics are ticking higher, suggesting room for a test above here. But the bearish daily Tension Indicator and negative weekly charts should limit scope in renewed selling interest beneath further congestion around 99.50.
Following cautious/corrective trade, fresh losses are looked for. However, a close below 98.60 is needed to turn sentiment negative once again and extend late-June losses towards congestion around 98.00.