Chart USD Index DXY Update: Room for higher
Cautious trade is giving way to a push higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 101.80 | ** | 24 Jun YTD high | S1 | 100.00 | ** | congestion | |
| R3 | 101.65 | ** | 28 Jul (m) high | S2 | 99.50 | * | congestion | |
| R2 | 101.00/05 | ** | congestion; 76.4% ret | S3 | 99.00 | ** | congestion | |
| R1 | 100.60 | ** | 61.8% ret of Jun-Aug fall | S4 | 98.60 | ** | 76.4% ret of Apr-Jun rally |
Asterisk denotes strength of level
08:45 BST - Cautious trade is giving way to a push higher, as intraday studies improve, with focus turning back to resistance at the 100.60 Fibonacci retracement. Overbought daily stochastics are ticking higher and both the daily Tension Indicator and broader weekly charts remain positive, highlighting room for fresh gains in the coming sessions. A close above 100.60 will improve sentiment and extend late-August gains towards strong resistance at congestion around 101.00 and the 101.05 Fibonacci retracement. However, already overbought daily stochastics could prompt fresh profit-taking towards here.
Meanwhile, support remains at congestion around 100.00. A close beneath here, if seen, will help to stabilise sentiment and prompt consolidation above further congestion around 99.50.