Chart USD Index DXY Update: Room for higher
Choppy trade has given way to a fresh push higher
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 100.60 | ** | 61.8% ret of Jun-Aug fall | S1 | 99.50 | * | congestion | |
| R3 | 100.20 | ** | 50% ret of Jun-Aug fall | S2 | 99.00 | ** | congestion | |
| R2 | 100.00 | ** | congestion | S3 | 98.60 | ** | 76.4% ret of Apr-Jun rally | |
| R1 | 99.86 | ** | 2 Sep (w) high | S4 | 97.95/00 | ** | 61.8% ret; congestion |
Asterisk denotes strength of level
08:40 BST - Choppy trade has given way to a fresh push higher, with the break above 99.50 currently balanced beneath the 99.74 high of 14 September. Daily stochastics and the daily Tension Indicator continue to rise, highlighting room for a test of strong resistance at the 99.86 weekly high of 2 September. A further close above here will extend late-August gains towards strong resistance within the 100.00/20 range, where mixed weekly charts could prompt profit-taking/consolidation.
Meanwhile, support is raised to congestion around 99.50. A close back beneath here will turn sentiment neutral and give way to consolidation above further congestion around 99.00. A close below the 98.60 Fibonacci retracement would turn sentiment negative and confirm continuation of June losses.