Chart USD Index DXY Update: Poised for further gains
Choppy trade above congestion support at 99.00 has given way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.20 | ** | 50% ret of Jun-Aug fall | S1 | 99.00 | ** | congestion | |
| R3 | 100.00 | ** | congestion | S2 | 98.60 | ** | 76.4% ret of Apr-Jun rally | |
| R2 | 99.86 | ** | 2 Sep (w) high | S3 | 97.95/00 | ** | 61.8% ret; congestion | |
| R1 | 99.50 | ** | congestion | S4 | 97.63 | ** | 17 Apr - 6 May (m) lows |
Asterisk denotes strength of level
08:40 BST - Choppy trade above congestion support at 99.00 has given way to anticipated gains, with prices approaching congestion resistance at 99.50. Rising intraday studies and improving daily readings highlight a developing constructive tone, and room for further gains in the coming sessions. A break above here will open up the 99.86 weekly high of 2 September. A further close above here will extend late-August gains towards strong support within the 100.00/20 range.
Meanwhile, a close below 99.00, if seen, will turn sentiment neutral and give way to consolidation above the 98.60 Fibonacci retracement. A close beneath here, not seen, will turn sentiment negative and confirm continuation of June losses.