Published: 2024-05-08T13:08:48.000Z
Chart USD Index DXY Update: Limited tests higher
Senior Technical Strategist
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The anticipated test of 105.00 has extended to congestion resistance at 105.50
Levels | Imp | Comment | Levels | Imp | Comment | |||
---|---|---|---|---|---|---|---|---|
R4 | 107.15 | ** | 50% ret of 2022-2023 fall | S1 | 105.00 | ** | break level | |
R3 | 106.50/52 | ** | congestion; 16 Apr YTD high | S2 | 104.50 | break level | ||
R2 | 106.00 | * | congestion | S3 | 104.25 | ** | 38.2% ret of Dec-May rally | |
R1 | 105.50 | * | congestion | S4 | 104.00 | ** | congestion |
Asterisk denotes strength of level
13:55 BST - The anticipated test of 105.00 has extended to congestion resistance at 105.50, where flattening overbought intraday studies are prompting fresh consolidation. Oversold daily stochastics are unwinding, suggesting potential for continuation beyond here. However, the negative daily Tension Indicator and deteriorating weekly charts should limit scope in renewed selling interest towards congestion around 106.00. Following corrective trade, price action is expected to turn lower once again. A break below 105.00 will open up 104.50, with room for continuation towards the 104.25 Fibonacci retracement.