Chart USD Index DXY Update: Choppy trade turning higher
The test of support at 101.50 has given way to sharp bounce
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 103.50 | * | congestion | S1 | 102.00 | ** | congestion | |
| R3 | 102.95/00 | ** | 14 Oct YTD high; congestion | S2 | 101.50 | * | break level | |
| R2 | 102.85 | ** | 50% ret of 2025-2026 fall | S3 | 101.30 | * | 38.2% ret of Aug-Oct rally | |
| R1 | 102.50 | congestion | S4 | 101.00 | ** | congestion |
Asterisk denotes strength of level
08:50 GMT - The test of support at 101.50 has given way to sharp bounce, with volatile trade giving way to consolidation beneath congestion resistance at 102.50. Intraday studies have turned positive and daily readings have turned mixed/positive, suggesting room for further strength in the coming sessions. A break above 102.50 will open up critical resistance at the 102.85 Fibonacci retracement and the 102.95 current year high of 14 October. However, mixed weekly charts could limit any initial tests in consolidation, before improving longer-term readings prompt a break and confirm continuation of January gains.
Meanwhile, support is raised to congestion around 102.00. A close beneath here, if seen, will help to stabilise price action and prompt consolidation/range extension within congestion above 101.50.