Chart USD Index DXY Update: Extending late-August gains
Choppy trade around 100.50 has given way to anticipated gains
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 102.00 | ** | congestion | S1 | 100.50 | break level | ||
| R3 | 101.80 | ** | 24 Jun YTD high | S2 | 100.00 | ** | congestion | |
| R2 | 101.65 | ** | 28 Jul (m) high | S3 | 99.50 | * | congestion | |
| R1 | 101.00/05 | ** | congestion; 76.4% ret | S4 | 99.00 | ** | congestion |
Asterisk denotes strength of level
08:45 BST - Choppy trade around 100.50 has given way to anticipated gains, as intraday studies turn higher, with prices currently trading around 100.75. Focus is on strong resistance at congestion around 101.00 and the 101.05 Fibonacci retracement. Improving daily readings highlight room for a test. But already overbought daily stochastics could limit any initial tests in consolidation, before rising weekly charts prompt a break and extend late-August gains towards critical resistance within the 101.65 monthly high of 28 July and the 101.80 current year high of 24 June.
Meanwhile, support is raised to 100.50. A close beneath here, if seen, will help to stabilise sentiment and prompt fresh consolidation above congestion support at 100.00.