Chart USD Index DXY Update: Cautious trade - any losses to remain limited
Anticipated tests higher have met selling interest beneath resistance at the 101.50 range highs
| 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
08:55 BST - Anticipated tests higher have met selling interest beneath resistance at the 101.50 range highs, as intraday studies turn down, with prices drifting lower towards congestion support at 101.00. Overbought daily stochastics are also ticking lower, suggesting room for a test beneath here. But the positive daily Tension Indicator and improving weekly charts should limit scope in renewed buying interest/consolidation above support at 100.50.
Meanwhile, resistance remains at 101.50 and extends to the 101.65 monthly high of 28 July. This range should cap any immediate tests higher. However, a close above the 101.80 current year high of 24 June, not yet seen, will turn sentiment positive and confirm continuation of broader January gains.