Chart USD Index DXY Update: Cautious trade - any gains to remain limited
Little change, as prices extend cautious trade
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 107.35 | ** | 3 Oct 2023 (y) high | S1 | 105.41 | * | 26 Apr (w) low | |
R3 | 107.15 | ** | 50% ret of Sep-Jul fall | S2 | 105.00 | ** | break level | |
R2 | 106.50/52 | ** | congestion; 16 Apr YTD high | S3 | 104.50 | break level | ||
R1 | 106.00 | * | congestion | S4 | 104.00 | * | congestion |
Asterisk denotes strength of level
13:30 BST - Little change, as prices extend cautious trade. A tick higher in intraday studies is putting focus on congestion resistance at 106.00. However, daily readings continue to track lower and broader weekly charts are mixed, suggesting any break above here should prove difficult to sustain. Strong resistance at congestion around 106.50 and the 106.52 current year high of 16 April is expected to cap any immediate tests higher. A close above here, however, would turn sentiment positive and extend late-December gains towards the 107.15 Fibonacci retracement. Meanwhile, support remains at the 105.41 weekly low of 26 April. A close beneath here would add weight to price action and open up support at 105.00.