Weekly Chart USD Index DXY: Choppy trade - studies continue to point lower
Consolidation above 102.00 has given way to a bounce, with prices reaching 102.50 before falling steadily to congestion support at 101.50
Consolidation above 102.00 has given way to a bounce, with prices reaching 102.50 before falling steadily to congestion support at 101.50.
Daily stochastics have turned down once again and the daily Tension Indicator is also coming under fresh pressure, highlighting room for deeper losses in the coming sessions.
A later close below 101.50 will add weight to sentiment and extend losses from the 102.95 current year high of 14 October towards the 101.30 Fibonacci retracement. A tick lower in overbought weekly stochastics points to room for a test beneath here. But the positive weekly Tension Indicator and rising longer-term readings should prompt fresh buying interest towards strong support within the 100.75 - 101.00 range.
Meanwhile, resistance is at 102.00 and extends to the 102.50 high of 28 October.
A close above here, not yet seen, will help to stabilise price action. Longer-term charts are also positive. But a close above 102.85 is needed to turn sentiment positive and confirm continuation of January gains beyond congestion around 103.00. Longer-term focus will then turn to the 104.60 retracement.