Chart USD Index DXY Update: Limited tests higher
The anticipated break below 98.00 has bounced smartly from above support at 97.50
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.00 | ** | congestion | S1 | 98.00 | ** | congestion | |
| R3 | 99.50 | * | congestion | S2 | 97.63 | 17 Apr (w) low | ||
| R2 | 99.00/18 | ** | congestion; 8 Apr high | S3 | 97.50 | ** | congestion; 61.8% ret | |
| R1 | 98.50 | * | congestion | S4 | 97.35 | * | 23 Feb (w) low |
Asterisk denotes strength of level
08:40 BST - The anticipated break below 98.00 has bounced smartly from above support at 97.50, as intraday studies turn higher, with prices currently trading around 98.30. Oversold daily stochastics are edging higher and the bearish daily Tension Indicator is flattening, suggesting room for a test of congestion resistance at 98.50. A break will open up stronger resistance at further congestion around 99.00 and the 99.18 high of 8 April. But negative weekly charts should prompt renewed selling interest towards here. Meanwhile, a close back below congestion support at 98.00, not yet seen, will add weight to sentiment and extend late-March losses back towards 97.50.