Chart USD Index DXY Update: Consolidating gains - any pullback to remain limited
The test of resistance at the 101.50 range highs and the 101.65 monthly high of 28 July has given way to a drift lower
| 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
09:20 BST - The test of resistance at the 101.50 range highs and the 101.65 monthly high of 28 July has given way to a drift lower, as intraday studies turn down, with prices currently trading around 101.25. Immediate focus is on congestion support at 101.00. But mixed/positive daily readings and positive weekly charts are expected to limit any tests in renewed consolidation. A close beneath here, however, will add weight to sentiment and prompt a deeper pullback towards 100.50, where renewed buying interest/consolidation should appear.
Following cautious/corrective trade, fresh gains are looked for. However, a close above critical resistance at the 101.80 current year high of 24 June will turn sentiment positive and confirm continuation of broader January gains beyond congestion around 102.00.